Is difficult to understand why the Federal Reserve and the Treasury Dept with its thousands of technicians, are not showing real concern on the effect of the current crisis with mortgages and stocks.
I learned that next year the amount of Adjustable Rate loans with introductory rates will reset interest rates to considerably higher rates than the current rate. Anybody can guess what that would mean…and at the end of the day, consumer confidence will be adversely affected.
In my opinion, I think it is absolutely necessary that the government cut the current 5.25% federal funds rate, so this would have an alleviating effect on the current homeowners in the path to foreclosures. A lower discount rate could also lead to allowing prospective buyers to qualify for affordable housing. It would seem that the last cut on the discount rate helped Wall Street players..it is time to help homeowners as well.
What do you think the government should do ?