Dark clouds are brewing over the family farm…
Prior to the Fed’s move a couple of minutes ago – the 10 year was already trading at a level that would allow us to offer 30 year fixed mortgage rates at 5.0% or lower. I would be surprised if we do not see rates at or below 5% when rates come out in a couple of hours. This is HUGE!
This is surreal! While the fed is lowering by .75% Paulson is speaking and saying the President’s package is Robust! A $500 check is NOT Robust! And then Paulso says (in response to the Fed Lowering) that the Fed is nimble and this should add CONFIDENCE to the market?!? Hugh?
And last week – another one of those surreal moments… Cramer sighted the same solution my SON suggested in his ECON Final last month!
According to Cramer, it’s the collapse of the mortgage and mortgage-backed securities insurers — like
MBIA [MBI 8.55 — UNCH (0%) ] , Ambac Financial [ABK 6.2 — UNCH (0%) ] , PMI Group [PMI 6.47 — UNCH (0%) ] , MGIC [MTG 14.11 — UNCH (0%) ]– that’s hurting the financials so much and causing the paralysis in the market. “I think these are the companies that are the lynchpin of what’s wrong,” he said.
Cramer offered a plan that called for a government handling of the pre-packaged bankruptcy of these companies and a guarantee of 50 cents on the dollar for all $500 billion in insured loans. Even if every loan defaults — “which is way, way too negative,” Cramer said — it will take just $250 billion to get the economy moving again.
It’s a fun time! If you are interested in buying, selling or refinancing property please contact us!
Steve and Eleanor Thorne 919-649-5058 We offer today’s best mortgage rates on a home in Raleigh