Posted on 08/10/2007 5:53:06 AM PDT by Hydroshock
The GDP projections for this years are already being scaled back.
So what is your prediction for this year? And for next?
In what sense was that a bail out of mortgage companies? The Fed stepped in and did a repurchase to maintain their discount/overnight rate of 5.25%. That's what the Fed does.
Sometimes they buy, sometimes they sell. Some days they buy more, some days less.
Geez, why is it necessary to color stuff the way you do?
See his pic in post #71.
At least you admit the government was an insurer. The money Congress allocated was to meet its obligations as an insurer. The money went to the depositors, and the S&L's were liquidated. That's not a bailout.
Second, I'm not sure I even agree with the gov't being in the insurance business.
There you go again, admitting the government was an insurer.
Why am I paying Nagin to rebuild New Orleans?
Why are you changing the subject? You must feel you are on shakey ground.
I don't see them coming to Indiana to rebuild here after a tornado.
I think the government pays people up to 25k to homeowners for tornado damage if there is widespread damage in an area.
You can call the payments to the S&L's whatever you want,
The payments went to depositors. The S&L's had their assets seized and were liquidated. I don't know why your anger isn't directed toward Paul Volcker who got the whole mess going. You could probably direct some toward LBJ, Nixon and Carter too, for their economic failures helped lead to that situation.
I do not know, but I figure I willhave a lot clearer picture about Christmas. After the October when the next big round of ARM resets hit and how it affects teh holiday shopping season will be telling. I for on am preparing for the worse. My wife and I are cutting back hard on unneeded spending, shunting the money to our Oh Crap fund, and are thinking hard of moving all our investments to money market funds and CD’s.
But you know we're headed into a recession? Be a man like your buddy ex-Texan. He called the top to the housing market in October 2003.
Be a man, throw out your specific guess for the economy this year and next. What do you have to lose?
I just am not sure when. But the signs are there.
You sounded pretty sure here.
Scoff if you will but we will be in a recession by this time next year, if not 6 months.
Be specific. We know you're not in the business, so just make a guess.
Come to think about you may have something there.
Hey, they got Victoria’s Secret models on the floor of the NYSE. RallYYYYYYYY!!!
OMG...I've warned anyone looking for insight on mortgages or real estate to not seek it on a thread started by HS, or follow his advice. This is why.
The Fed, for those who don't know, use interest rates as one lever to control economic activity. The thinking behind this is that if interest rates go up, fewer people and businesses will want to borrow, commerce and therefore the economy will slow down. It works.
There are other levers they can use, but this one is the best known. They set this rate...the Fed Funds rate...which becomes a target. When you hear on TV that the Fed is raising or lowering rates, this is the rate the Fed actually moves. It's the rate that banks charge when they lend each other money, for periods as short as overnight. A bank will lend because they have excess cash, and they want to earn interest on it. A bank will borrow from another bank, for example, to meet regulatory requirements for what's called "liquidity."
The Fed wants the rate banks are charging each other to equal that target. They do so by increasing or decreasing the amount (or supply) of those funds available. This is called a market operation, and is typically done every business day.
I can explain more if anyone wants to know, but what Hydroshock is describing as a bailout is just what happens in the normal course of the business day. Frankly, it would be news if the Fed had interfered with what is a normal part of their daily operation.
Anyone who does not understand this is not a source for financial, mortgage or real estate advice or perspective that you should follow. I'm sure he's undoubtedly a very nice guy and a good judge of wines; he is not a good source of perspective or advice.
That's my $.02; my background is that I'm a real estate investor, I spent 6.5 years as a mortgage broker/banker, and I'm a licensed Series 7 and Series 66 investment advisor.
The closest I see you predicting mortgage rates before this crisis is your post below. Could you point me to your claim.
To: TeddyIke
Hope your wrong.
I just don’t understand why they’d keep raising mortgage interest rates. I am no expert here, but it seems this is like trying to put out a fire with gasoline.
75 posted on 07/26/2007 3:46:35 PM CDT by dragnet2
Get ready for it. The Feds are currently working this out with GS and ML. By Aug 15 we shall see the unusual involvement.
Yeah, a world wide conspiracy. I heard you the first two times you said it. LOL!
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