Is the government creating another subprime-mortgage bubble?

The first time around, the three-headed federal serpent – the Bush administration, the Treasury Department and the U.S. Federal Reserve – used Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) to “legitimize” trillions of dollars worth of toxic financial waste known as subprime mortgages.

The result was the worst financial crisis since the Great Depression – a mess that was global in nature.

And we’re now headed for a repeat performance.

Some of the players may have changed since the first subprime-mortgage crisis, but the game apparently remains the same. With banks currently unwilling to lend, the new federal triumvirate of the Obama administration, the Treasury and the Fed are trying to inflate the moribund U.S. housing market. This time around, however, the FHA is the weapon of choice.

Obama & Co. are making an all-or-nothing bet that the

Last week, Lehman Brothers auctioned off $400 billion of its defaulted debt at below nine cents to the dollar. Andrew Snyder says that put a big strain on stock markets as CDS sellers had to liquidate assets to pay the insurance. Andrew says stock investors should look out for market sell-offs around October 23 and November 4 and 5. This is when Washington Mutual and Iceland's bankrupt institutions will face their own CDS settlements.