From Mortgage Meltdown to Financial Tsunami

On Tuesday the Fed’s took what some called a “tough love” stance and chose to hold the Fed Funds Rate at 2 percent for the third straight meeting. This move leaves the prime lending rate at 5 percent. The prime rate is attached to credit cards, equity lines, student and car loans. The Fed did [...]

Roller Coaster Continues for the Financial Sector

Financial sector is in trouble again today, the Dow Jones Industrial Average down more than 460 points. The Standard & Poor’s 500 index has fallen 54 points, and the Nasdaq composite index fell 74 points. The big news makers are Lehman Brothers, Merrill Lynch, Bank of America, AIG, and the Fed buy up of $70 [...]

Fannie & Freddie Bailout a Band-Aid at Best…

The Fed to the rescue….?? This weekend Henry Paulson announced the government takeover of Fannie Mae and Freddie Mac. In Paulson’s words “the housing downturn is at the heart of the economic downturn.” Fannie and Freddie combined are projected to have $14 billion in loses. Fannie was able to raise capital, Freddie not so able. [...]