Why did the fud cut so much, rates for consumers have not come down, some have gone up. Markets are forward looking why in the hell are interest rates not dropping. Rates for CDs and other consertive means for saving sure came down.
It is because no matter how hard the Fed tries, at some point the rates will start to reflect reality due to market forces, rather than the Fed's manipulation. At some point, the Fed will find that it has lost control of the situation.
Fed has cut three %. The average 30 year mortage down .40% Great job your friggen fed fags. The rate you can get for you cash sure dropped fast though. The goverment encourages debt, and discourages saving what a fucked up policy.
But its LOVELY for the bank's balance sheets as the funding spread for short term borrowing is much more pleasant now. Particularly if you care to use that discount window. Sorry - you thought the fed was interested in you? Its all about the aggregate... a single datum doesn't do too much one way or the other.
I hear today that banks borrowed 75 billion at a rate of .33% Don't fight the fed, all companies which can borrow from the Fed have super arbitrage. LEH could lose every single client they have and still make money by borrowing an unlimited amiunt of funds from the fed at .33% to 2.5% then investing in anything and everything yielding higher than 2.501%
Thats tax payer money to, the wall street greedy bastards must be shakeing in their lofers thinking everytime they here Obama is leading in the polls. I hope he wins and runs these crooks out of the US.
I dunno if it's taxpayers' money. These are newly printed dollars. I'd say it's taxpayers, non-taxpayers, retirees, and even the Chinese's money. Really anyone holding US dollars or bonds is having their purchasing power decrease thanks to the Fed. I guess it's kinda like a stock where the CEO is granting himself and friends and incredible amount of stock options, executing them and selling on the open market. Eventually all shareholders of will pay the price due to the flood of new shares. It may not be obvious at first but the price of the stock will eventually have to decline.
It's getting worse in the UK as well. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/27/cmnationwide27.xml Nationwide cracks down on mortgage lending By Emma Thelwell Last Updated: 11:48pm GMT 27/03/2008 Nationwide plans a dramatic withdrawal of some of its best deals from the mortgage market tomorrow, in a further sign that Britain's banks and building societies are cutting back on lending amid the crisis in the credit markets. Nationwide's 2-year tracker for a 95pc mortgage will jump by more than half a percentage point to 7pc - higher than its standard variable rate of 6.74pc. All of Nationwide's fixed rate products will see rates increased by 0.2pc. Nationwide is withdrawing some of its best mortgage deals from the market Nationwide has announced plans to withdraw some of its best deals from the mortgage market The lender plans to throw out some of its most competitive 2-year fixed and tracker mortgages. David Hollingsworth from London & Country, the mortgage broker, said: "Halifax and Abbey have been hiking rates and withdrawing products on almost a weekly basis. "Nationwide's move shows there is no end to the current round of constant withdrawals and repricings. "I know it's already a cliche, but (for those trying to secure a mortgage) it really is a case of blink and you miss it." advertisement Mr Hollingsworth said Nationwide's "quite radical" repricing is indicative of where the mortgage market is currently at. A big shift away from volume, in favour of quality and price, is well underway, he said. In a note announcing the changes to mortgage brokers across the country, Nationwide said: "We have recently been experiencing large numbers of mortgage applications and with recent competitor changes this is likely to increase. "However, as a prudent institution we have to manage our business volumes, and focus continues to be on quality, not market share." The lowest available rate for a 2-year fixed rate tracker provided by Nationwide will now be set at 6.4pc, with a set-up fee of £599. This contrasts notably with the likes of Co-op Bank's rate of 5.49pc, with a £999 fee. Last week, the Council of Mortgage Lenders warned that more lenders would clamp down unless the Bank of England takes action to ease the conditions in the credit markets. The number of mortgage approvals dropped by a third last month, according to latest figures from the British Bankers' Association. Meanwhile, Savills Private Finance, the mortgage broker, is contacting all its customers on fixed-rate deals that expire any time this year, advising them to apply early to secure a deal.
I think they better add the USA to the list!!! http://www.telegraph.co.uk/money/ma.../03/27/cniceland127.xml&CMP=ILC-mostviewedbox Iceland contagion may spread far and wide By Ambrose Evans-Pritchard, International Business Editor Last Updated: 11:47pm GMT 27/03/2008 As Iceland goes, so go the Baltics, the Balkans, Hungary, Turkey, and perhaps South Africa. All are living far beyond their means, plugging the gaping holes in their accounts with fickle flows of foreign finance. All have let credit grow far above the safe "speed limit", some exceeding 50pc a year..................