So what was it that spooked the markets… Well… The only thing I can find was the report yesterday about falling Housing Starts that Chris told you about… Did you know that about 14% of US homeowners were either delinquent on their mortgage or in some stage of foreclosure? That is the highest rate since the group started collecting the data in 1972!

But there was something else that was announced as the day went on, that I think probably spooked the markets more than anything else… And that is a key House panel approved two amendments to a sweeping financial-overhaul bill that would give federal watchdogs new authority to audit the Federal Reserve, and would establish a fund of as much as $200 billion to help dissolve large, troubled institutions. Rep. Ron Paul (R., Texas) offered the amendment seeking to subject the Fed to audits.

China bulls beware… Chinese regulator warns of American-style housing bubble… Market rejoices over housing start rebound… should you be celebrating too? Dan Amoss on shorting the stock market’s recent strength… Sign of the times… Mexicans, Czechs no longer welcome in Canada… Plus, Byron King reveals an arresting historic gold chart…

Risk aversion has left the building…  CIT survives without Fed help…  SNB tries to fight the markets…  Light week for US data… And Now… Today’s Pfennig!

No real surprise here, Existing Homes Sales are expected to increase. It should be a combination of two factors, too-good-to-pass-up deals on foreclosed homes, and families moving to new school districts over the summer to avoid switching schools mid-year.

Risk Assets soar! …  What’s behind this stock rally? … Charts and fundamentals…  Aussie Consumer Confidence Drops…  And Now… Today’s Pfennig!

On the earnings calendar, as you can see from the ones I have listed there is a significant amount of retailers reporting this week. That’s only a partial list, here’s the rest: ANN, BJ, APP, DDS, HOTT, DKS, ARO, GPS, PSUN, NWY, ROST, and TJX.

Housing and Construction Stats Improve; Mobius: Emerging Markets Close to Bull Market; Sprint Beats Expectations; Bovespa Hits Seven-Month High;  Buffett Says Wall Street Sold “Sewage”; Liberty Spins Off DirecTV; Airlines Low on Cash; Mexico Lifts Work Ban on Flu Scare

Geithner rescues the stock market…  Commercial real estate, the next big drag…  Norway: the new safe haven…  China pushes for a new reserve currency… And Now… Today’s Pfennig!

The dollar rally pauses…  Another Mortgage Bill…  Yen in trouble?  Gold pushes higher again! And Now… Today’s Pfennig!

Are you a “responsible homeowner?” If so, President Obama has a gift for you.