8 replies to this topic

[eminimee]

Don't know what the PC is all about...but it comes at a very interesting time this morning.....if they say anything about cash injections or mortgage bailouts in a positive way.....up we go.....or we tank. Blue count bearish ...red count bullish

http://stockcharts.com/c-sc/sc?s=$OEX&p=5&yr=0&mn=0&dy=6&i=p24895446900&a=95301681&r=3167.png

[skunk]

G W will find a way to mess it up.

[Frac_Man]

Quoting our President George Bush : " Bring it ON "

Don't know what the PC is all about...but it comes at a very interesting time this morning.....if they say anything about cash injections or mortgage bailouts in a positive way.....up we go.....or we tank. Blue count bearish ...red count bullish

http://stockcharts.com/c-sc/sc?s=$OEX&p=5&yr=0&mn=0&dy=6&i=p24895446900&a=95301681&r=3167.png

[nimblebear]

Buttheads will lower rates.

[humble1]

#1: it has been interesting to see the approach being taken, i suspect not unplanned, by bernanke and paulsen and bush: there is no serious problem and the market will take care of it. my comment: how the market DOES take care of it might not be rEal pretty. #2: we have been hearing this repetitive cry from market observers that a rate cut will solve the problem. think about it: * if a rate cut helps a real estate burst bubble, way didn't it help in japan, where rates went to ZERO and reat estate prices were 50% lower fifteen years later !?! * how would a rate cut make any serious difference to mortgages, many of which are in the low teens on the reset OR repair credit enough to allow refinancing ? PLEASE: SOMEONE REBUT ME ON THIS AND EXPLAIN MY ERROR !

[eminimee]

I've got blinders on....just using charts...otherwise my head would be very screwed up...more than normal!



http://stockcharts.com/c-sc/sc?s=$SPX&p=15&yr=0&mn=1&dy=8&i=p33572845572&a=89430406&r=6542.png

[OEXCHAOS]

#1: it has been interesting to see the approach being taken, i suspect not unplanned, by bernanke and paulsen and bush: there is no serious problem and the market will take care of it. my comment: how the market DOES take care of it might not be rEal pretty.

#2: we have been hearing this repetitive cry from market observers that a rate cut will solve the problem. think about it:

* if a rate cut helps a real estate burst bubble, way didn't it help in japan, where rates went to ZERO and reat estate prices were 50% lower fifteen years later !?!

* how would a rate cut make any serious difference to mortgages, many of which are in the low teens on the reset OR repair credit enough to allow refinancing ?

PLEASE: SOMEONE REBUT ME ON THIS AND EXPLAIN MY ERROR !

OK.

There is no comparison between a $150k-$200k house in the midwest and 1980's Japanese real estate. Valuation wise, tax wise, market wise. A cut here will make a big difference, IF they do it right. If not, then it won't. People here can still find value in homes, couldn't do it in Japan.

Now, those who have variable rates re-setting, and who have good credit and at least theoretical equity in their homes will benefit from lower rates. That's pretty clear. Really marginal lenders won't be helped, but they were a trainwreck from the start.

Also, lower rates will be a help to a ton of student loan debtors, which may well allow them to get into a first home sooner, which makes for a buyer for some of those properties turning over.

Still, it's tricky. Cut too much too soon and you create another problem with the stock market and commods and the buck.

Mark

[TTHQ Staff]

Bush's rejects of a higher gas tax to fix bridges, and discussed sub-prime loan problems, that's all.

President Bush extolled the fundamentals of the U.S. and global economy on Thursday but expressed concern in light of the subprime loan crisis, saying Americans applying for credit may not have entirely grasped the consequences of their choices.

"We've had a lot of really hardworking Americans, you know, sign up for loans, and the truth of the matter is they probably didn't fully understand what they were signing up for. And, therefore, I do believe it's the proper role for government to enhance financial, you know, education initiatives. And we're doing that. Got money in the budget to do that," the president said during a news conference in the White House's Brady press briefing room.

The delinquency rate on home loans was nearly 5 percent in the first three months of the year and the market of late has tumbled and recovered several times in recent weeks. The opening bell on Wall Street Thursday set off a wave of selling, prompted by a French bank's announcement earlier in the day that it is freezing its assets because it can not determine how much of its money is caught up in the U.S. subprime market.

Bush said that people who lose their homes should receive "enormous empathy" from Americans, but he is confident that housing market can help with refinancing many loans and does not need government interference. He also suggested that people become more financially literate before diving into a large loan.

Later, Bush added that during a meeting with his economic team on Wednesday he was briefed on the decline in housing prices, and after war-gaming a number of scenarios the group had concluded that they expect a soft landing for the market.

With the economy rolling, but concerns about the U.S. infrastructure and mortgage delinquencies, Bush said he thinks the U.S. can sustain the level of funding on troops in Iraq. Despite disagreement about the mission, he said, no one should object to providing every resource needed by U.S. troops on the ground.

The question of priorities came in light of last week's bridge collapse over the Mississippi River in Minneapolis. About $24 billion, or 8 percent of the last $286 billion highway bill, was devoted to highway and bridge projects singled out by lawmakers. The balance is sent in the form of grants to states, which then decide how it will be spent. Federal money accounts for about 45 percent of all infrastructure spending.

- Fox News

- Fox News

[SemiBizz]

Always get the feeling I am being lectured to by someone with the brains and mental age of a nine year old. On the mortgage mess, the Feds can lower a whole point now, they just have to find someone, anyone... willing to take the risk... I have a feeling it's going to have to be the gov't.