I only shrug and nod compliantly when tech folks say the housing debacle, the credit crunch, the equity market gyrations, and other macroeconomic factors those very same tech folks proudly proclaim their ignorance of, does not effect them.

It does. And it will continue to do so.

Solution? Or same speech, different day?

It’s a big market, and growing. Nevertheless, you have to be good at playing “Who’s Your Counterparty.”

Alan Greenspan is now promoting a direct taxpayer-funded bailout of homeowners. Mr. Greenspan has been trying very hard to shift blame for the mortgage crisis, but this statement takes the cake. Begging for increased Fannie Mae, Freddie Mac, and FHA limits serves much the same purpose. It’s socializing losses.

Be forewarned - a direction is being drawn. A 600 FICO score and a pile of credit card debt is no problem - you are hereby authorized to sign any borrowing agreement you can get your hands on. You won’t need to return that widescreen TV that’s now a part of your HELOC. That leased car you’ve already missed two payments on? It’s yours - just keep it.

It’s not a liquidity issue, or one of solvency. It’s a government problem.

A solution for your debt overindulgence is close at hand - you’re neighbor will soon be bailing you out.

UPDATE: More support for subsidies, at the high end of the market. The high end hasn’t started getting whacked, yet.

UPDATE 2: Yet more on neighbors, including how some are being hurt by the questionable decisions of others.

UPDATE 3: And back to blaming the Fed.

Ugly - With financial services representing roughly a third of online ad spending, what happens to the Web 2.0 trend (so dependent on advertising revenue) if said cash flow disappears? It’s probably not going to be pretty.

Uglier - Investment banks are soon going to be pouncing on each other, trying to convince the markets as to which of them is the best shorting opportunity. I wonder if their in-house hedge funds will get in on the game.

Ugliest - Freddie Mac finally has its accounting errors behind it, but now it’s facing the reality of reserves for losses. Back up…maybe they still don’t have their act in gear - a $320 million reserve on roughly 3/4 of a trillion in loans is a drop in the bucket. Still, what a way to “limit your growth.”

Forbes just posted a graph showing the expanding gap between median home prices and median wages, based on data garnered from the National Association of Realtors and the Social Security Administration.

Now, a whizbang economist could probably enhance this analysis by commenting on the relative interest rates during the period (taken from Ibbotson), the rising mortgage and consumer credit levels (from the Federal Reserve), and even the balance of trade between the US and foreign countries (from the US Department of Commerce). He or she could go on and on about how the difference between the two elements means housing prices are primed for a severe downturn or we are headed for depression-era styled times. Others might expound upon the information as a sign that hard assets are the place to be, and the numbers reflect good times, particularly increasing wealth versus working hours.

I am no economist. I walk my dog around my neighborhood each morning and each evening. I see cars parked on the street in front of houses with large two car garages.

Based on my data I still thought the graph needed a little work:

I didn’t get a chance to snap a pageview of the auction before it was taken down, but a person was attempting to flog their credit card debt on eBay. Despite the fact it wasn’t really their debt to sell, it gives you a pretty good idea of how seriously some folks take huge (in this case £22,000, or roughly $38,000) credit card debt.

I wouldn’t be surprised if the proud “owner” of this debt was driving a brand new Bimmer, living in a posh Thames view pad, and making only £50k. At least they are having a good time of it.

Credit information services are just one more link in the chain, aggregating data in the name of X amount of efficiency, while sucking X + 1 of monetary value out. Who bears the burden of X + 1?

The consumer does.

Choicepoint and all of its cousins (Equifax, TransUnion, Experian, FairIssac, etc.) should all be regulated. We are a services economy, and financial services is one of the biggest pieces of the pie. With data flowing every which way, much of it erroneous to boot, there are bound to be more Choicepoint scares (and I’ll bet there are more from them too) waiting in the wings. I suspect the total amount of damage from fraud, perpetrated in complicity with the bureaus, will soon exceed the “1″ factor.

For the full story, read ChoicePoint Should Be Regulated, FTC Chair Says.

I agree wholeheartedly.

An interesting note was posted by Russell Beattie, entitled Mobile Security Thoughts. Getting some scoop on the Paris Hilton “My Phone Was Hacked Craze,” I think everyone will get the hint about mobile security after the read.

Unfortunately, CNN, in the tradition of mass media skewing the picture in a wide ranging attempt to scare the daylights out of everyone, posted their own version of how to protect yourself in: You and Paris Hilton can prevent identity theft. Sort of. - Feb. 22, 2005.

Sorry folks, but it isn’t going to work on its own.

While quoting some obscure security expert, CNN notes you should do things like shred your receipts before throwing them away. Hey, maybe we should stuff them in old mattresses until they fade!

The last check of my credit receipts showed a bunch of XXXX’s where the credit card number should be. And AMEX is happy to send me a new card every year, with a new account number, each time I “lose” it to kitchen scissors.

Yes, there are simpler (and some more complicated) ways you can protect your address book, your credit information, and your identity as a whole. And it doesn’t take a genius, as thieves are usually (I say USUALLY) pretty dumb to begin with.

Simple stuff:

1) Don’t put outgoing mail in the mailbox by the street, and stick up the stupid little flag. Scumbags know there will be checks for bill payment in there. Drop it off at the post office or in a USPS mailbox.

2) Check your credit once a year, minimum. MyFICO.com is a good place for comprehensive, if paid for, reporting.

3) Get a post office box. Having inbound bills going to a different address than your home is a easy way to spoof thieves who think they know your mailing address from the numbers on the side of the house, when they call asking for a new credit account. Click here to find the most convenient one.

4) Don’t use internet services to keep your “rolodex” accessible. You put the onus of security in the service provider’s hands. If a thief is smart (most aren’t but good hackers are very), they will target the aggregators before they try and pickpocket your individual day planner.

More complicated stuff:

1) Keep important documents in a safe deposit box. Easy. Scan the middle of the road stuff, and shred. Not so easy. Using a combination of Adobe Acrobat and Pretty Good Privacy can keep your important documents safe and sound on your hard drive. But don’t forget to make periodic backups.

2) Purchase products only from reputable internet vendors. I say this, because such vendors are usually a little bigger, therefore they have more money invested in security measures.

3) Put a fraud alert on your credit report. MyFICO is still a good place to start for information on making that happen (as it takes a little time to do). I keep one on all mine reports, and it works, because I tested it!

I recently entered a T-Mobile store to check on how easy it was to open up an account. I like my existing service - this was purely investigatory, and, not so easy. Even with two forms of picture identification, T-Mobile quickly turned it down, citing the fraud alert, and suggesting I contact my credit reporting agency. Great!

Funny that the dummies over at T-Mobile are exactly the ones that kept fine Paris’s address book for her.

4) Now number 3 might suggest getting financial service (or other) is difficult. It isn’t, if you have a face to deal with. The meaning - use a local bank or branch, and get to know them by walking in for transactions. Also, don’t trade securities online only, while simultaneously buying your insurance online, and doing all your banking and shopping online. It isn’t the online part that is troublesome, but the aggregation of it that is. You need a face or two that know you well.

Despite their sometimes cheesy reputations, insurance agents and stock brokers are a great human connection to have in our virtual world. Your portfolio and insurance are important - keep their administration with someone you know and trust (and can actually have a cup of coffee with). If you are ever a victim, they can be EXTREMELY helpful.

5) When all else fails, hold the information aggregators responsible. I am surprised that more folks aren’t suing the daylights out of these folks (maybe they are, but I don’t hear much about it). Maybe that is because of cost, or maybe the powers that be don’t want you to know how much information is really floating around, but you get the hint - they (Choicepoint and others) have a lot!

If they screw up, it is their fault, plain and simple. Get a good lawyer. I am not one to going around causing trouble (I have never sued anyone), but the way these credit reporting and other information brokers operate is beyond sleazy and stinky. They won’t release information they have about you without charging a bundle, but they don’t think twice about selling the information, in bulk, to some bucket shop around the corner.

It is about the money, guys and gals. They need to be made an example of. Since Mr. Bush has tightened the screws on class actions, I believe it is everyone’s responsibility to make sure these folks pay for their arrogance.

Yes, this post ended with a call to order. And I meant it as such. No, I am not bitter, as I have never been a victim. But I feel sorry for those who have, as it is not always stupidity on the part of the consumer, but on the part of the information bureaucrats, the internet social networks, and your friendly phone company, that is causing so many innocent folks so much trouble.