Yahoo - "Bernanke: lower interest rates are 'feasible'" (12-1-08)

"Federal Reserve Chairman Ben Bernanke said Monday that further interest-rate cuts are 'certainly feasible,' but he warned there are limits to how much such action would revive an economy likely to stay weak well into next year."

CNN - "Government warned of mortgage meltdown" (12-1-08)

"The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents. 'Expect fallout, expect foreclosures, expect horror stories,' California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job."

Bloomberg - "Treasury Yields Drop to Record Lows as Bernanke Cites Buybacks" (12-1-08)

"Treasuries rose, pushing yields to record lows, as Federal Reserve Chairman Ben S. Bernanke said the central bank may purchase Treasuries and target long-term interest rates to combat the deepening recession."

Bloomberg - "Yields ‘Next to Nothing’ Lure Funds to Riskier Assets" (12-1-08)

"While U.S. government debt returned 10.1 percent on average this year, the most since 11.6 percent in all of 2002, Merrill Lynch & Co. index data show, yields dropped so low that fund managers have little chance of offering anything but subpar returns in 2009. Yields on two- and 10-year notes, as well as 30-year bonds fell to record lows today. That helps explain why BB&T, BlackRock Inc., T. Rowe Price Group Inc. and Sage Advisory Services Ltd. are looking elsewhere for returns, including bonds of the banks that were almost ruined by $967 billion in losses and writedowns since the start of 2007. Treasury funds are receiving permission to buy debt of Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. after the Federal Deposit Insurance Corp. finalized plans on Nov. 21 to guarantee their debt."

San Francisco Chronicle - "Bay Area sees deals on homes for under $100,000" (12-1-08)

"While five-figure homes are run of the mill in places such as Oklahoma or Mississippi, in the Bay Area you couldn't buy a doghouse for that amount. Until recently. Today, more than 600 properties currently on the market here are listed below $100,000. Agents say prices dipped that low starting this summer, as banks became increasingly eager to unload huge inventories of foreclosed homes."

The Wall Street Journal - "Lower Mortgage Rates Are Not the Answer" (12-1-08)

"On Tuesday, the government announced an $800 billion plan to stimulate the economy by buying $600 billion worth of mortgage-backed assets and $200 billion in consumer-debt securities. The intent is to make it easier for consumers to buy cars, pay for college tuition and get credit cards. Mortgage interest rates fell about a half-percentage point on the news. (See 'Fed Aid Sets Off a Rush to Refinance') Will the effort finally get the economy moving again? Frankly, I doubt it. Lower mortgage rates can help people buy housing, but only if they feel secure enough in their jobs, and confident enough in their financial future to take the plunge. Given that consumers are drowning in debt -- especially housing debt -- fearful of layoffs, and waiting for housing prices to hit bottom, it's unlikely that they'll react to this initiative with a spending spree."