Warren Buffett's $3.85 billion bid on the mortgage and loan portfolio of bankrupt Residential Capital LLC has some wondering if Buffett's high-stakes bet signals an end to the worst of the housing and lending crisis.

Bloomberg published an article this week citing sources who claim Buffett's Berkshire Hathaway has been wrong about housing before, but if you analyze credit metrics and what's happening in loan portfolios, the housing segment does appear to be improving.

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