I always thought that the generally accepted spread between the Fed rate and the Bank rate was about 1-1/2 percent. Now the banks and lenders seem to be at 4-1/4 percent. Is this the way the lenders are going to be after the banking bail out. How is this going to kick start the economy with lenders holding up the country. Seems like they are afraid of having a bad loan and if they are going to get one they are going to be well protected with other loans at double the rates on the spread. Also what ever happened to PMI? We all know what it is for (loans with less than 20% down) but has anyone heard of the insurance actually paying off? Was PMI not required on ARM loans? I welcome your comments. I do not seem to be able to get my head around this.