Monthly Archives: November 2008

Lenders Take Action To Reduce Foreclosures

With unemployment rising rapidly, we’re looking at an increase in foreclosures. A year ago, foreclosures were concentrated in places with speculative real estate bubbles such as California and Florida. Now they’re more widespread. Fannie Mae and Freddie Mac are leading … Continue reading

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Interest Rates Headed For Zero

When will the Fed cut rates again? Soon. They are meeting in the middle of December. The Fed is expected to cute rates to .5%. That would be the lowest since the Fed began keeping records in 1990. The Fed … Continue reading

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What’s The Good Of Lower Interest Rates?

People are squeezed. They don’t have much capacity for taking on more debt. So what’s the good of lower interest rates? Typical middle-class families face rising costs and stable incomes. They’re making do by taking on debt. What pushes people … Continue reading

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Will FHA Loans Meltdown?

The FHA (Federal Housing Administration) is insuring thousands of subprime loans. They’re insuring loans for those without much income. Yep, those who created the subprime crisis are using the FHA program encouraging home ownership. To turn around America’s slumping housing … Continue reading

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What Role For The Federal Housing Administration?

Consumer credit ground to a halt last month. Now the Federal Reserve is making moves to loosen things up. It is spending $600 billion to buy dodge mortgage-backed securities. It is spending $200 billion to help consumers with all sorts … Continue reading

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American Banking System Stunned By Fear

The facts on the ground seem stubbornly resistant to the billions of dollars of government intervention. There’s been nothing like this credit crisis ever before. The U.S. Federal Reserve is buying $600 billion worth of toxic mortgage-backed securities. The Fed … Continue reading

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Refinancing Flood

Interest rates are down (to about 5.5% on 30 year mortgages). Refinances are up. Federal aid is flowing in to spur lending. Eventually, these lower rates will spur home sales. Might turn this whole housing slump around. Here are some … Continue reading

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U.S. Buys Mortgages

By Chris Reese NEW YORK, Nov 25 (Reuters) – Longer-dated U.S. Treasuries surged on Tuesday as investors bet that a Federal Reserve plan to buy mortgage securities would spur a sustained need for government bonds in investor portfolios. Further evidence … Continue reading

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Feds Buying Mortgages

Here’s a good summary: Nov. 25 (Bloomberg) — The spread between the rate to exchange floating for fixed interest payments and Treasury yields over two years narrowed the most since 2003 after the Federal Reserve committed up to $800 billion … Continue reading

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A New Plan To Prop Up Mortgages

By Mark Felsenthal WASHINGTON (Reuters) – The Federal Reserve threw a massive life-line to consumers on Tuesday with two new programs aimed at making it easier for them to obtain loans for homes, cars and on credit cards. Under the … Continue reading

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