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Will the Fed Saves US??????

The Federal Reserve is scheduled to meet tomorrow; it is thought they are ready to maybe lower the interest rates. Its has been more than 4 years since the last such action. Is it too late? Should they do so it is expected to help borrowers who "can" obtain credit see rate drops on seevral loan types. Those being financing for credit card debt, home equity lines of credit, and should help those homeowners whose ARM's rest in the fall. However it is not expected to bring immediate relief for the nation's economic posture. Some estimate put it at as little as three to nine months and on the other end as amny as 18 months before the effect ripples through the economy and bolster activity

Chief economist Mark Zandi of Moody's Economy.com, puts the odds of the economy failing into recession at a 40% chance, where as before he gave it a 12% probability.

Thus far it seems the housing market has shown the most problems.

Posted by Paul Durry, Broker Associate, CHMS, I.R.E.S. on 09/17/2007 03:22 PM

Comments (6)

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6 Comments on Will the Fed Saves US??????

Rates are more LIBOR linked which is way up!

The cut will kill the dollar! We are moving to third world status!

09/17/2007 03:27 PM

by Josh Hahn (www.thehousingbubble.com)

Paul - The effective impact of a rate cut will be the boost in consumer confidence. It is apparent that the public at large does not understand how mortgage rates work. They have been coming down but that is because of activity in the bond market. If consumers truly understood mortgages and interest rates, there would not have been so many stupid decisions regarding loan products used in the past two years.

The public may perceive the rate cut as a sign that things will be better and that the economy is being protected by actions of the Fed.

09/17/2007 03:41 PM

by John MacArthur The MacArthur Group (Long and Foster Real Estate, Inc.)

John, you may have hit the nail on the head. From another blog the other day it placed a lot of the blame on us all. We in the Real Estate industry let things opened the proverbial Pandora's Box. We all tied to help many fullfill the "Dream". On one blob, one writer called it the NINJA syndrome, where by a borrower was able to obtain a 100% financed loan..is this crazy or what?

09/17/2007 04:11 PM

by Paul Durry, Broker Associate, CHMS, I.R.E.S. (RE/MAX Professionals)

Just another note.. I went back through the blogs and found the original blog, which stated "It's Everybody's Fault", author was Galel Fajardo. But the response comment of the NINJA (No income, no job, no assets, no credit, not nothing) was submitted by Chris Pollinger. If you get a chance check it out...

09/17/2007 04:25 PM

by Paul Durry, Broker Associate, CHMS, I.R.E.S. (RE/MAX Professionals)

Feds to the rescue again, how lives does the industry have left?

09/07/2008 10:34 PM

by Paul Durry, Broker Associate, CHMS, I.R.E.S. (RE/MAX Professionals)

And the national debt continues to grow.......

09/07/2008 11:06 PM

by Dawn Harmon, San Diego Realtor, Broker-Associate (Windermere Pacific Coast Properties)

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