That’s what you call expensive financing. And the Journal says even if it’s successful it might only delay a government bailout. as the paper says “the housing crisis shows no signs of slowing.” Tell that to your cousins at Barron’s.

The two companies’ stocks have risen sharply in the last couple of days after plunging last week. Yesterday Freddie was up 22 percent.

Drip, drip, drip

In economic news, housing starts were weak for the month. They actually rose 9.1 percent in June but only because of a quirk in New York City building rules. Without that change, starts fell 4 percent, the Journal says on A3 and the Times on C7.

New unemployment claims increased to 366,000, up 18,000 on the week.

Ryan Chittum is a former Wall Street Journal reporter, and deputy editor of The Audit, CJR's business section. If you see notable business journalism, give him a heads-up at rc2538@columbia.edu.