1st it's Countrwide being sold to Bank of American

Then it's the Feds taking over Fannie Mae & Freddie Mac

Then it's Chase preparing to buy Washington Mutual

Then Lehman Brothers files Chapter 11

Then Bank of America closes in on Merrill Lynch

What's Next?

Many of the remaining financial institutions are not that solid themselves and they are purchasing the assests of insolvent MAJOR INSTITUTIONS.  It's cheaper for the federal government to bulster their bottom lines then worry what to do if/when the purchasers become insolvent themselves.  This point was driven home now that there is NO BUYER FOR LEHMAN.  What happens if there is no buyer for the next one to fall?  What if the deals don't close with Chase/WaMu & BOA/Merrill?

The best thing for the federal government to do is continue reducing the federal funds rate making the loans these remaining institutions have more profitable.  Don't be surprised if the funds rate drops this week triggering a mini refinance boom for the mortgage industry.  That will also put more disposable income in the pockets of americans and help keep the economy going...

Are you ready to refinance?

www.MortgageAdvisor.info & www.GregZaccagni.com

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