BlackRock, Highfields, and PennyMac - Hope

It's funny, but BlackRock Inc and hedge fund Highfields Capital Management and putting some muscle behind a company named Private National Mortgage Acceptance Company - call it PennyMac.

These plan to get money from private investors. I just wonder who? Who right now believes that buying distressed mortgages, which is what they plan to do, is a good thing?

Why this is good for you?

PennyMac, worth following, will also help borrowers restructure their loans so that they can avoid foreclosure. What is of interest is that PennyMac is coming together at a time when mortgage default rates - say foreclosures - are at an all-time high.

Also interesting is that the credit problems citizens are facing in America are affecting other markets in the world. I still am not calling it a recession, yet.

Hang in there. These moves are going to make it better... for you.