Let me start off by saying I’m not an economist.  I have taken Econ 101 and Macro Econ but nothing more in economics but I do have an opinion and reading the story today from Market Watch it really makes me wonder about people who are the big players in Economics.  I mean look at this statement:

"The speed, breadth and depth of the evolving credit crisis means that the risks to the downside remain distinctly to the downside," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.

Now I ask you, when is a credit crisis NOT risky to the DOWNSIDE?  It seems to me (clearly not an economist at a huge bank) that it would NEVER BE THE UPSIDE!

Making more money also seems to not be the answer!  We have a situation where the people in power are making more money to pull us out of the current recession.  There I said the R word.  Sorry folks but we’ve been living with the R word in Michigan for sometime.  People who have lost their homes know it, people who sell cars know it and people who sell homes as homeowners or as Realtors also know it.

One last comment about the economists who state whether we are in a recession.  I find it very interesting that historically the recessions are generally identified when you are in the middle of one or pulling out of the recession.  Gosh, that sounds like an easy forecast to make.  Doesn’t seem to me you need a PhD to figure that out.

I don’t have an opinion about Chairman Ben Bernanke and I do think we all wish it was still Alan Greenspan, but I think that is because financially we were fat and happy then and not so much now.  

Please don’t assume I think Ann Arbor, Michigan is in the recession for the long term, I don’t believe that and my next post is going to be very positive about all the great things happening in the business arena here.  I just was reading some of the economic news today and thought I’d share my current frustration.  

The next question I have for our talented mortgage folks is what is going to happen when the fed drops the interest rate:

“The consensus forecast of economists surveyed by MarketWatch expects the funds rate to be cut from 3% to 2.25%.

There is even growing talk of a 1 percentage point reduction in the Fed funds target rate.”

What is going to happen to mortgage rates with this move especially when it is possibly going to be so large?

To the people who are economists at Active Rain, I mean no disrespect and these opinions are obviously mine and only mine.