Whoops! The bottom that some analysts thought was in the credit markets just dropped out again. Fears that the US government may yet have to take over Fannie Mae and Freddie Mac have sent US assets and the dollar tumbling again. Buying the two agencies, which are vital to the US housing market and with it the savings of most Americans, would require the printing of gajillions and even basquillions of dollars, fictional units that are used to measure the fictional value of the dollar should this course become necessary. New fears? Or old ones? We're left to ask whether this wasn't just another sucker's rally, one that will repeat itself over and over as bear traders lure in cut little bunny rabbit investors looking for the tender spring shoots under winter snows. And then, chomp! Silly rabbit, stocks are for bears! What this could mean is that attention will swing back to problems in the US, whereas for the last two weeks it had started to shift to the looming slowdown in Europe, Japanand emerging markets. Priority needs to be focused on righting America's housing market. The weak dollar may be good for American export competitiveness, but if it means killing demand for emerging market exports, America may have nowhere to sell its manufactures. New data show that the primary beneficiaries of the cheap dollar are commodity exporters, particularly American farmers. US industry may need a recovery of the US consumer just as much as Asia and the rest of the export-dependent world. Still, American consumers seem to be growing more comfortable with their plight. News media in the US are trumpeting the fact that falling oil prices have pushed gasoline down to ONLY $3.74 a gallon! That's bad news for the Obama camp and its call for change. Comfort and complacency favor the party of the incumbent. But Asian central banks are now reportedly shying away from Fannie and Freddie auctions of debt, which would mean higher rates, slower economic growth and lower US housing prices if the US government doesn't step in. What are you going to do with your dollars? I'm going to use mine to reupholster a chair. warnold@thenational.ae