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Historic Announcements

By Scott Fowler

Mortgage and Lending with Guaranteed Rate (NMLS ID #2611) NMLS ID #107432

September 19, 2008 03:46 AM

Three huge government announcements have taken the stage this morning. First, Treasury Secretary Hank Paulson announced that the US government will guarantee money market funds, after panic lead to $180 Billion being taken out of money market funds yesterday.

Also this morning, the Fed announced plans to create a market place for illiquid mortgage debt. This is a brilliant move that should do a lot of long-term good to help the housing and lending environment.

Finally this morning, the SEC placed a ban on the short selling of 799 financially related stocks. Hopefully, this will add another level of calm to the current financial crisis.

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Mike Wong

Keller Williams Realty Southwest - Sugar Land, TX

Realtor: Commercial, Residential, Leasing, Invest

I wonder how long the Feds can sustain these bailouts and money infustions into the economy. Its preventing a monumental crash right now, but we still keep having these smaller tremors that will eventually lead us to the same lower levels.

Sep 19, 2008 04:53 AM

David Saks

Memphis, TN

Broker / Industry Analyst

The short sell move is a nasty thing. since in short selling or "shorting" the seller is selling a financial instrument that he doesn't own, in the hope of repurchasing it later at a lower price. This is done with the attempt to profit from a decline in price, and since the seller is "borrowing the security", how can he return it if it's lost before it can be repurchased ? Bad news !!! Good post, Scott. Have a fine weekend.

Sep 19, 2008 05:03 AM

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