Fed Heads Back to the Well, Will It Run Dry?

All your posts show a great deal of naiveness or just down right negativity. Even the article itself blames the FED and what they are doing. None of us has the information the FED has on what is truly happening. Since most people are ignorant of history the circumstances we have now is how the great depression started. Failures in the banking system, crash of the stock market, etc. They are working toavoid that. It had nothing to do with Bear Sterns. Once we have cascading failures in the banking system the whole financial system would unravel wiping out savings all almost all regular guys. I would rather see the FED do all it can than what happened in the 1920's when the government did nothing and created the depression. Keep in mind what happens here effects everywhere. Think of all the retirement money in 401K that erased by drops in the stock market, peoples savings in banks etc can all be wiped out. Whining and ignorance is no excuse to not know. Not one of us will escape if the banking system collapses. Let the FED do its job. Its going to take alot of effort and leadership to restore 8 years of horrible economic policy by the Bush Administration. I hope we can make it till January and a new president before we have a global meltdown in the financial markets. There is a reason Gold is at record highs.

The solution is to refi as many of the subprime loans as possible. These are mostly 3/1/6 with no PMI, therefore people will ultimately pay up to 6% over there start rate, which was already 2 to 3% ubove prime borrowers. Here is the sloution which MUST be implemented NOW...time is of the essence. Set up a gov backed program...here is how it works....there will be 4 groups....A B C and D borroweres (all of which cannot qualify for anything out there)....A being the best...regular banks and brokers will do the job....each loan will be a 30 year fixed, A=8% with 0.5% as PMI going into a group insurance policy against losses in a defualt. B=8.75% with 0.5% defualt Ins, C= 9.5%, 0.5 defualt, D=10% 0.5% defualt.....all can refi anytime they qual for a better deal..these will be fixed rates.....A,B,C.D will each have guidelines, Like A...credit min 550, 12 mon current on mortgage, B...500 min, 6 month current on mortgage, etc.....base this on statistics....try to save 80% of the best performing loans out there. 603-770-8824

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The solution is to refi as many of the subprime loans as possible. These are mostly 3/1/6 with no PMI, therefore people will ultimately pay up to 6% over there start rate, which was already 2 to 3% ubove prime borrowers. Here is the sloution which MUST be implemented NOW...time is of the essence. Set up a gov backed program...here is how it works....there will be 4 groups....A B C and D borroweres (all of which cannot qualify for anything out there)....A being the best...regular banks and brokers will do the job....each loan will be a 30 year fixed, A=8% with 0.5% as PMI going into a group insurance policy against losses in a defualt. B=8.75% with 0.5% defualt Ins, C= 9.5%, 0.5 defualt, D=10% 0.5% defualt.....all can refi anytime they qual for a better deal..these will be fixed rates.....A,B,C.D will each have guidelines, Like A...credit min 550, 12 mon current on mortgage, B...500 min, 6 month current on mortgage, etc.....base this on statistics....try to save 80% of the best performing loans out there. 603-770-8824

The solution is to refi as many of the subprime loans as possible. These are mostly 3/1/6 with no PMI, therefore people will ultimately pay up to 6% over there start rate, which was already 2 to 3% ubove prime borrowers. Here is the sloution which MUST be implemented NOW...time is of the essence. Set up a gov backed program...here is how it works....there will be 4 groups....A B C and D borroweres (all of which cannot qualify for anything out there)....A being the best...regular banks and brokers will do the job....each loan will be a 30 year fixed, A=8% with 0.5% as PMI going into a group insurance policy against losses in a defualt. B=8.75% with 0.5% defualt Ins, C= 9.5%, 0.5 defualt, D=10% 0.5% defualt.....all can refi anytime they qual for a better deal..these will be fixed rates.....A,B,C.D will each have guidelines, Like A...credit min 550, 12 mon current on mortgage, B...500 min, 6 month current on mortgage, etc.....base this on statistics....try to save 80% of the best performing loans out there.

The solution is to refi as many of the subprime loans as possible. These are mostly 3/1/6 with no PMI, therefore people will ultimately pay up to 6% over there start rate, which was already 2 to 3% ubove prime borrowers.Here is the sloution which MUST be implemented NOW...time is of the essence.Set up a gov backed program...here is how it works....there will be 4 groups....A B C and D borroweres (all of which cannot qualify for anything out there)....A being the best...regular banks and brokers will do the job....each loan will be a 30 year fixed, A=8% with 0.5% as PMI going into a group insurance policy against losses in a defualt. B=8.75% with 0.5% defualt Ins, C= 9.5%, 0.5 defualt, D=10% 0.5% defualt.....all can refi anytime they qual for a better deal..these will be fixed rates.....A,B,C.D will each have guidelines, Like A...credit min 550, 12 mon current on mortgage, B...500 min, 6 month current on mortgage, etc.....base this on statistics....try to save 80% of the best performing loans out there.

do ya think anyone sees these post other then uswe need a george bush comment page that goes straight to him but of course he cant read

As a retiree, I depend on monthly CD interest to cover substantial health care costs; if Big Ben drops the Fed rate another 100 basis points that will reduce my earnings from $1800/mo in Dec. to a paltry $700 in April. This is a crime; home loan rates are already at historic lows (if you can get one) I paid 13.5% in 1984!! Who benefits from these "low" rates other than the banks Again, people who save get the short end of the Fed's stick! Our lesson in greed continues..

Print dollars = existing dollars worth less. Take dollars for world economy = less dollars left No money at banks = bad, bad time for all Sold gold from 3 years ago (approx. 345 per ounce) = $1,017 per ounce

There is only one thing that can be done to fix everything. Lower the GAS PRICES. If they can put it back down to $1.00 a gallon then everything else will fall into place.

I see a lot of people complaining about the banks and the fat cats stealing from the tax payers. My advice to you all: instead of sitting around whining about it -- learn to steal!

I made the mistake of turning on the biz news this morning and some lame talking head was lamenting that the fed would keep cutting rates with the knowledge that there was a price that they would have to pay .. runaway inflation (whether or not the government ever admits its existance). NewsFlash .. The fed aint paying inflation, we peons are. Why people arent rioting in the streets is beyond me. Maybe Alex Jones is right and it was the flouride that they put into the water that turned us into the passive cattle we have become.

RON PAUL was the only person in the race that spoke about the perils of our banking system, understood the root causes of these problems, and spoke to the American people like adults presenting facts, figures, and ideas for how to fix the underlying problem. Inflation is government theft, dollars are a sucker bet.

"Bernanke's action amounts to a gift to JP Morgan of whatever the value of guaranteeing $30 billion in "less liquid assets" turns out to be. How did he get the right to use the taxpayers' money that way?" BINGO! and now they want to expand cheap borrowing to non-bank financials. they are continuing to put the taxpayers on the hook for their "flexible" machinizations of creating capital. in secret meetings they concoct plans for govt to guarantee questionable assets instead of going back to source of these toxic placements- Investbanks, private equity and taking back their ill gotten gains. and bernancke keeps gutting non-risk returns for force savers into risky investments just to keep up with inflation. TIME TO GUT THE FEDERAL RESERVE!

amen bmax

Wow, the well run dry...I think we are seeing the bottom of the well, and the water is shallow. We need to have our business of manufacturing brought back to the US. Manufacturing builds the encomony. I have never understood, why these companies insist on shipping our manufacturing jobs overseas....if we don't have jobs here how can we have any kind of economy to buy the $40,000 cars that are suppose to cost less because the are manufactured over seas???? Next, the 2% people who are not making the mortgage payments , because the remaining 98% are making the mortgage payments. For those 2% who have what ever drinking, gambling, or just plain blowing your money......get your act together and pay your mortgage...unless you want to be homeless...pay your mortgage...FIRST!!!!! Next, start uncapping the oil wells in the US, and bring these jobs home to the states, and invest in our economy. Rather than investing in Opec ( Saudi Arabia)....They have no intention of bringing the prices down. Next, stop sending and importing things from China. They don't care about the quality...We have had at least 10+ reports of tainted products from childrens toys to prescription drugs...They only care about maximum profit...They have not figured out QUALITY...IS....IMPORTANT !!!!!! If you kill your customers who are you going to continue to sell your tainted products tooo???? Just some thoughts....It is time we take a proactive approach...we cannot just sit on our hands and wait for someone else to do it for us....because at the end you will be still sitting on your hands in the soup line.....

Too much margin leverage was a major factor in the Great Depression. Margin leverage is a major factor in the crisis at hand too. Some things have been proven immutable: a) Leverage NOT good b) Borrowing short term while investing long term, NOT good c) Old fashioned lending and underwriting standards that have been used for hundreds of years, good. If a borrower doesn't have a job and a large down payment, he or she is likely to be deadbeat and have nothing to lose if loan goes into default. The lack of morals on the part of borrowers is astounding. Personal responsibility, standing by your word and personal accountability and responsibility are dead. In its place is the admired attorney or accountant that games the system, a mentality of victimhood and a demand for handouts because it is only "fair" and "just." And the deadbeats are not just over extended homeowners, everyone on Wall Street from Cramer to most bank CEOs think the same way.

For years and years and years, inflation was public enemy number one. What happened? Bernacke is heading us back to the days of runaway inflation. Just keep printing money, what could go wrong? For every action, there is an equal and opposite reaction. Unfortunately, I think we're gonna see a reaction to this loose money policy in the not too distant future. Anyone holding long-term bonds is gonna take it in the neck. The Fed is suffering from hubris. In trying for a short term fix, it is making matters worse for the long term.

I am so tired of these financial cheerleader journalists using every excuse, explanation, and rationalization for the government's continual bailouts. To these idiots every temporary crisis might lead to the end of the world, so they explain, "we must have the government intervene (bailout)". They will always have an excuse. No matter how you cut it, it's moral hazard and will just lead to more and more speculation in the future when these companies know they will get bailed out of their bad decisions. This is nothing more than socialized losses and privatized profits. It's a sham. Wake up america!

FED stops interfering the markets (using tax money to rescue fat cats) and stops cutting rate. rate cut - inflation and money flows to other high interest rate countries - gas and food price go up - buying power is down (people only buy the necessities.) - consumer markets go bad - cut jobs - buying power is further down - recession. Did low interest rate really help Japan in its economic?