With stocks down 98% from a year ago, rising loan delinquencies and very little liquidity, Indymac, one of the nations top 10 mortgage lenders is done! It’s closing its wholesale and retail operations as well as halting any new locks. At one time IndyMac was a major player in the “Alt-A” market (loans with risk levels between subprime and prime). From Bloomberg earlier today:

IndyMac, the second-biggest independent U.S. mortgage lender last year behind Countrywide Financial Corp., has lost almost $900 million in the nine months ended in March amid tumbling home prices. The company is focusing on mortgages that can be sold to government-sponsored enterprises like Fannie Mae and Freddie Mac.

If you are in the market for a home mortgage and were working with a mortgage broker, call your broker to ask if the loan was to be placed with IndyMac. You’ll need a new lender!

In other bleak news, it was disclosed today that Fannie and Freddie may be required to raise as much as $85 billion in additional capital. To be fair it’s due to new accounting rules, but still the markets were in turmoil.

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I’ve decided to lie to you. At least, I’m being honest about it!

I have grown tired of reporting weekly, it seems, on the ever expanding, contracting global credit market and the resultant deep recession the U.S. currently finds itself on the cusp of.

Americans, perhaps more than people anywhere, love being in denial. We deny we are getting fatter and fatter by eating McDonald’s 15 pounders; we deny that our kids are getting dumber and dumber even if high school seniors often can’t point to the U.S. on a world map; and, we deny that we are in denial, even though we clearly are…about a lot of things.

So, why not be in denial about the alleged mortgage/credit crisis (note, I said, alleged!!).

Here Goes

Home prices are now actually at an all time high! I know, if you read “the news” you’ll be told that prices of existing single family homes fell another 2.6 percent in February for an annual decline of 12.7 percent.

Just deny it!

That’s right.Whose to say that “facts” have to screw up your day? Ignore “the news” and, take a page from George W.–just keep saying things are getting better and they will…for him.

What’s that? You say you read that consumer confidence has fallen to a five year low this month? Nonsense.

Just deny it!

It will go away. We don’t have to face any “fact” we think will make us loose sleep. Just keep telling yourself–and others–that consumer confidence is at a 175 year high!. There, doesn’t that feel better? Of course it does.

The cost of food, medical care and gas going up,up and away? No freaking way!!!

Just deny it!

In fact, convince youself food prices are lower now than anytime since the turn of the century–the 20th century; that everyone has health insurance that even pays for free liposuction; and, that Saudi Arabia has decided to donate a decade’s worth of free gas and oil to each and every American simply because they can!

Bet you REALLY feel better now!

Yes you do!!! Don’t deny it!

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This Post is from the BiggerPockets Real Estate Blog. Copyright © 2008 BiggerPockets, Inc. All Rights Reserved.

Everything Is Getting Better: A Real Estate Fairy Tale