The FED to The Rescue? Good or Bad?
Last week’s rescue by the federal reserve of the mortgage bond market was a positive sign, that the federal reserve (the FED), has finally recognized the risks inherent in the housing and mortgage market. Good for them. Of course the downsize is that the market could not rescue itself, and thus required he biggest FED bailout since 9/11. The risk this causes is that rates cold be driven higher as the dollar may be devaluated, s usually happens in such a cycle of activity. A lower dollar means, it will cost more to buy good, especially foreign good and services. That is something America depends on too much these days. My advice, start buying American, and lets strengthen the fundamentals of our own economy and I believe everything can stabilize soon. What does this mean to the consumer in the housing market? Expect a slow recovery in prices and interest rates. Fortunately it can also mean a better supply of funds to make he mortgage investors comfortable enough to start investing in mortgage backed securities, and thus provide new money into the system, for we consumers to borrow to buy property again. Be sure to get to our upcoming live event. Get details at http://tjmarrs.com T.J. Marrs http://tjmarrs.com http://livingfreeandclear.com http://creclub.com