If the “The Root Cause Of Our Economic Problems Is The Housing Foreclosure Crisis” as Senator Dodd States, then all the bad mortgages and the $700 Billion Bailout is not necessary.

Or maybe he is ass backwards and it was Wall Street with their aggressive mortgages and the Federal Reserve who encouraged folks to go out and get adjustable rate mortgages and did not do their jobs anyway regardless of Wall Street.

Remember it is the Federal Reserve that monitors and controls the financial markets in the United States!

Marc Faber said on CNBC on Tuesday that the best (solution) is to let the crisis burn itself out and clean the system, even with pain for people on Wall Street, and the banning short sellers won’t solve anything.

Proposed changes in accounting rules that could force Fannie Mae and Freddie Mac to move certain Mortgage Backed Securities (MBS) onto their balance sheets should not have a major impact on their capital requirements, according to the Government Sponsored Enterprise (GSE) regulator.

The Office of Federal Housing Enterprise Oversight is working with the Financial Accounting Standards Board on changes to FAS 140, OFHEO Director James Lockhart indicated.

The two government-sponsored enterprises already have a 45-basis-point capital charge on their guaranteed MBS, he noted. Investor concerns that an accounting change would trigger a dramatic rise in their capital requirements "makes no sense," Mr. Lockhart said.

Wall Street stock investors dumped Fannie and Freddie shares on Monday on fears that the GSE might have to raise $75 billion in new capital due to accounting changes.

In an interview on CNBC-TV, Mr. Lockhart stressed that Fannie and Freddie are adequately capitalized and have raised $20 billion in new capital over the past seven months.

Fannie Mae and Freddie Mac See Sell-Off

Wall Street may be left a little smaller after the dust from the credit crisis settles. But will its next incarnation be even more profitable?

Markets Get a Pick-Me-Up. 12//12 The Fed’s plan to ease the credit crunch was met favorably on Wall Street but there are still plenty of concerns.

Stocks Slide On The Federal Reserve’s ‘Lack of a Move’; UK Economy.

The US Central Bank cut interest rates again in order to bolster the housing market and US economy. In its final meeting of 2007, the Federal Reserve cut interest rates for a third straight time. But Wall Street is saying “It’s just not enough”.

Federal Reserve’s Cuts Disappoint Wall Street Once Again. A big decline on Wall Street as the Fed cuts interest rates again, but less than some had expected.

# The Dow declined 294 to 13,432.
# The S&P 500 slid 38.
# The Nasdaq lost 66.

Dow Tumbles After Rate Cut. The Federal Reserve cut its key interest rate again for the third time in three months. But the anti-recession measure got a cold reception from Wall Street. Anthony Mason reports.

Stocks rise on UBS announcement, surprising housing news and optimism about Federal Reserve meeting. Wall Street gains ground with financial stocks leading the way higher.