Europe is a mess, save for Germany and France and a few other responsible republics. And housing here could take another hit — the federales have a plan that allows for 150% of the value of a home to go to a borrower with debt at 61.3% of income.

According to Barron’s Alan Abelson, quoting Mark Hanson, the Home Affordable Modification Program (HAMP) could be worse than the sub-prime debacle. Mark Hanson thinks the majority of the loans will, within 15 months, default again. He also says that one in 10 Americans missed a mortgage payment in the first quarter of 2010, a record. One in 10 American’s credit card debt is also being written off, another record.

More than ever, this country needs to shrink the size of federal government to reduce the deficit, which one respected school says is at 83% of GNP and on its way to Greece-like 112% or more in five short years.

Have a great week and do good work.

Check out more blog entries from Richard Hoe.