market holds its breath waiting for word from Congress...
September 23, 2008 1:03pm CST
The market hangs on a moment -- the positive or negative response from Congress on the recent bank bailout situation. And when I say recent, I mean the ridiculous turmoil that the US economy has been walking through for the past year and the beginnings of the housing, mortgage, and credit crisis can trace back even 3 or 4 years. What will the Congress conclude? They probably won't do anything that lets the US economy slide deeper into its own degenerative filth. We'll find out soon enough and the market will react strongly whatever the final word is. Perhaps there won't be a final word and just the postponment of a decision. I don't know.
• United States
23 Sep 08
I personally think that this "crisis" has been in the works for much more than 3 to 4 years. When mortgage companies began creating artificial equity in homes in order to give high interest home equity loans, they were setting the stage for a collapse. Many also granted second mortgages to those they knew would be unable to pay. Many more were given loans for building or purchasing homes despite their lack of money for an initial investment in the form of a down payment - and despite their lack of ability to pay back these funds. I'm wondering just what this is going to entail - will they buy already foreclosed properties from the banks at reduced rates and then resell them and finance them? Will they buy existing loans from these banks and administer them through the government - perhaps FmHA? And what about all the people who have already faced foreclosures and lost there homes - many of whom are now homeless and living on the streets?