Readers suggested a topic on current credit trends. "Tightening Credit? Is anyone seeing/feeling this in your area. Some of our local banks are still pushing zero down 100% home loans with a good credit score. Chase is still pushing 0% C.Cards on transfers up to 15 months… 6.9% fixed.Just had that offer last week. COFED Bank of Colorado is sending out a big push for first time home buyers."

From a lender. "Well, there are loan-peddlers, and then there are lenders. I could shut down my lending window for a number of years, so long as my clientele don’t all simultaneously decide to pay off the principal. Loan-peddling, an occupation even more unproductive than mine, is dying a well-deserved death."

One had this, "We cut up the last credit card 2.5 years ago, and if I want a TV I have to save up to purchase it. Of course I won’t roll in there and spend 5K on a TV, because when you pay in cash you feel the 'pain of purchase,' and suddenly you start thinking things like 'hmm, I can buy a 1k TV, take a 1K trip, throw 2k in savings for the kids education, and buy new laptops for the whole family for 1K.'"

"Nobody would make those stupid purchases if they made them with cash."

"The really crazy thing is how would we measure the economy if we didn’t measure it based on 'public sentiment,' which is really just how willing people are to go into slavery to Visa for poorly thought out purchases."

Another has this strategy, "We married with simple, thin wedding bands. (Eloped to boot!) When meeting my add-on family, my SILs asked, 'Where’s the rock'?"

"I just smiled. Hubby and I were saving for the diamond, and we decided used furniture was a better fit. Yes, we saved for a rock, it’s modest and I actually prefer other jemstones to the ice."

"We still save and often change our minds on any given designated purchase(s). Saving is addictive. I’ve been able to keep our principle and earn a modest return."

Another noted, "Was in BofA today. 30 yr. fxd @ 6%. home equity @4.75%. New gimmick started today; seems when an indivdual makes a purchase with a debit card the bank rounds the amount up to the nearest dollar, transfers the difference from checking into savings AND matches the deposits for one year."

"I asked the teller if the bank is now encouraging saving. He just chuckled. This bank is actually encouraging the use of debit cards."

One from Georgia. "I saw some income demographics for one of the suburban Atlanta markets that has seen a lot of new home building during the bubble. Most of these new houses are in the $600K range, but quite a few are over $1M. The median household income for this area is $78K."

"Guess how many people had a household income of $200K or more that could actually afford (using pre bubble 3X income qualifying) that $600K house ? ONE. That’s right, ONE family out of almost 8000 in a 3 mile radius can really afford that new house they bought."

From Reuters. "Office of Federal Housing Enterprise Oversight director James Lockhart said that government-sponsored enterprises Fannie Mae and Freddie Mac were taking steps that should help keep mortgage rates lower. Regulators eased capital requirements for the two biggest U.S. mortgage finance sources so they can provide more funds for stressed mortgage markets."

"In response to questions, Lockhart said he supported the idea of consolidating the regulation of Wall Street investment banks and other financial market participants that have come under criticism as credit markets have come near seizing up."

"'I think that's a good idea,' he said, adding Fannie Mae and Freddie Mac need a strong regulator as they keep growing."

"One reason they need to be strongly regulated is to prevent the possibility that, should they get in trouble, they could cause problems for the whole financial system."

"'Systemic risk is a big issue with these two companies. When you have 76 percent market share in just two companies, obviously they are the system,' Lockhart said, calling that 'a key reason' for legislative action to tighten regulation."

From MortgageOrb. "The Office of Federal Housing Enterprise Oversight (OFHEO) has transmitted to the Federal Register a final Examination Guidance - Conforming Loan Limit Calculations."

"The final guidance addresses the handling of decreases in the house price data used to set the conforming loan limit as well as procedural matters relating to calculation of the limit that determines the size of mortgages eligible for purchase by Fannie Mae and Freddie Mac, OFHEO explains."

"Based on comments received in two public comment periods, OFHEO is issuing a final guidance that provides that the conforming loan limit would not decrease from its current level of $417,000 in 2009 and subsequent years. However, OFHEO adds, the conforming loan limit will not increase until cumulative increases in house prices exceed cumulative decreases since the $417,000 limit was first reached."