As Indymac's share price crossed into sub-dollar area (81 cents as of now), warnings are starting to emit out of Wall Street and Washington.

Mozilo faces a barrage of criticism about the way he mishandled the company and brought it to the brink of bankruptcy, about his personal compensation, the extraordinary amounts he accrued by cashing in Countrywide stock in the months preceding the subprime mortgage crisis which decimated the value of the company's shares, and about using the company as a personal fiefdom to grant favors for frien

Should the Fed directly start lending directly to mortgage REIT investors and reduce their load by taking the mortgage-backed securities off their hands? If this does happen, it will, in one stroke, wipe out the impact of subprime mess, which has three parts - a) Home owners facing foreclosure, b) Investors holding tainted mortgage-backed securities, and c) A credit crunch.