Federal Reserve 101

By
Real Estate Agent with Silicon Beach Properties • KW CalBRE #01712960

 The Federal Reserve pumped $62 BILLION dollars into our financial system this week because the rate on bank-to-bank loans is significantly above the Fed's benchmark rate.  Do you know what this means?  If not, take a look at this excellent, short article I saw in the Los Angeles Times business section this morning called A primer on the Federal Reserve

Is this week's action significant?  As the article points out, the second infusion on Friday ($38 billion right after Thursday's $24 billion dollar infusion) was the Fed's biggest corrective move since its move right after 9/11.

If the Fed's actions make your eyes glaze over, I urge you to look at this article.  Our economy impacts world markets in significant ways and we as real estate professionals are sitting in the eye of the storm.  None of us can afford to not understand the basic mechanics of what is happening.

 

Posted by

 

 

Tracy Thrower Conyers
Silicon Beach Properties • KW, CalBRE #01712960
m: 424.272.1339 | w: www.SiliconBeach.properties

buy. sell. lease. residential in silicon beach.

Comments (7)

Paul Kaplan
The Paul Kaplan Group, Inc - Palm Springs, CA
Mid Century/Modern homes in Palm Springs - www.Pau

Thanks for sharing that link to the LA Times article.  Wonder what will happen next week??

Paul

Aug 11, 2007 09:36 AM
» Bill Burress Nationwide Mortgage Originator
» Bill Burress Nationwide Mortgage Originator - Fort Myers, FL

Tracy:

Thanks for sharing the article.  This should be required reading for all.

Aug 11, 2007 10:04 AM
Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales
I'm not a registered member, so I can't read the article. But I do understand the significance. This country's economy is suffering -- and about to suffer more -- from the temendously bad political leadership of the last 6 years. We're about to leave our army's entire supply of equipment in Iraq, just like Napoleon did at the door to Moscow. We owe trillions to the Chinese. What were they thinking?
Aug 11, 2007 10:22 AM
Tracy Thrower Conyers
Silicon Beach Properties • KW - Venice, CA
buy. sell. lease. residential in silicon beach.

You're welcome, Paul!  It's an interesting time, that's for sure.

I wholeheartedly agree, Bill.  Thanks for coming by and commenting.

Ann, I'm not sure why you weren't able to view the article, but you can go to latimes.com and search "primer."

Aug 11, 2007 10:46 AM
Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876
Excellent information, and unfortunately...I get it!!  These are different times and we are in a new day.  I only hope the best for all in our industry!  :-)
Aug 11, 2007 12:14 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Tracy, I read the article. Now read mine: Is There a Single Person That Understands Money? I think that it fills in some of the blanks in the L.A.Times article.

Bill Roberts

Aug 17, 2007 03:53 AM
Tracy Thrower Conyers
Silicon Beach Properties • KW - Venice, CA
buy. sell. lease. residential in silicon beach.
Hi Bill!  I read and enjoyed your post.  Thanks for sharing.
Aug 17, 2007 06:21 AM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?