Monday, March 17, 2008

Yahoo - "More Rate Cuts From Fed Expected Tuesday" (3-15-08)

"
Desperate to aid an economy in crisis, the Federal Reserve is ready to deliver yet another big interest rate cut. How big? One-half of a percentage point, some economists say. Investors and others hope for even more, a three-quarters cut or perhaps a full point, given the turmoil on Wall Street. It will be a close call, Fed watchers say."

Orange County Register - "Are mortgage ‘cramdowns’ really so bad?" (3-15-08)

"Republicans in the Senate so far have successfully blocked a plan by Democrats to grant bankruptcy court judges the power to modify terms of primary home mortgages, including reducing the principal balance. The big fear: such a change to bankruptcy law would lead to higher interest rates on mortgages. The thinking is investors will need to be compensated for the risk a mortgage they purchase will later be reduced by a judge – such reductions are dubbed 'cramdowns.'"

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