EllensProphet on 23 January 2008
From what I read the FED is seeking to avoid creating another asset bubble by toughening the standards a borrower needs to meet, while keeping rates low so that adjustable rate mortgages don't adjust up much. This is hoped to permit very qualified buyers to support the housing market (so the market does not freefall) and to keep inventory low by keeping marginal borrowers from entering BK. Already many banks will not purchase loans written by mortgage brokers.
I think this will lead to a long decline in the market punctuated with frequent sucker rallies. Nintendo should be able to keep selling its products.
The urge to play is a terrible thing to waste.
