After taking Friday night off to watch our local High School football game (hey, I've gotta use those high priced reserved seats my wife bought) and then heading to Tuscaloosa Saturday to watch Nick Saban and the Alabama Crimson Tide play Tulane, I'm back and ready to put in my two cents worth. So I drive back home today and what do I discover?  I find that we all went into the mortgage business over the weekend courtesy of Mr. Hank Paulson and his comrades. That may be a good word to use here..."comrade" as it's a well known Soviet Union/Communist Party expression. Being Fannie and Freddie are basically being nationalized, that's sort of "communist like" don't you think? Heck, Hugo Chavez in Venezuela's made nationalizing things into an art form, and we all know how "communist" he is (a lot if you really don't know). Really though, everyone knew this was coming. All you had to do was listen to Paulson say it wasn't going to be necessary over and over again to know that it was. I really don't know why they waste their breath with all the denials. Any how, what does it mean? Well, it definitely raises the argument for hyperinflation as this takeover will lead to out and out monetization of Fannie and Freddie's bad debt, which you and I are now on the hook for. It's really the only way hyperinflation can happen at this point. If the government (we the people) takes on everyone's bad debt and replace it with newly created fiat dollars then hyperinflation could be our future. We have to be open to that possibility. But if things take the more natural course, continued deflation will prevail. You'd better understand right now that what happened over the weekend with Fannie and Freddie is going to ignite hyper inflationary fears. We could see the commodity trade make a come back for a while. If it does, the rebound and it's success or failure will give us a clue as to which side will win. As far as stocks, they continued lower Friday and then put in a reversal on lower volume than Thursdays big down day. It really wasn't an impressive reversal. However, the market is set to gap up huge at the open Monday after the Fannie/Freddie news. I don't know how long it'll hold. We'll have to see. It could be a very bad day for the shorts all the way to the close. This is one of those rare news items that temporarily disturb the normal flow of the markets. I believe with the NYSE breaking it July low Thursday, Paulson rushed to make this announcement to lend support. Should we really be surprised?  Well that's about it. Talk to you tomorrow comrade.