Chatbug Karen

Hubby certainly is smiling these days. The market has been doing well. I hope it helps all those people who are having trouble paying their mortgages. That is what Greenspan’s plan was; to help citizens honor their mortgage payments. The Federal Reserve lowered the prime interest rate by half a percent. This was a surprise. Loan companies expected a drop but are thrilled that it dropped so much. This will help spur the economy because interest rates will drop on loans.

Edit: Now, I don’t understand how this will help those people who are losing their homes and being foreclosed on. The article I just read says, “Many of the worst hit cities are in Sun Belt areas that experienced outsized home-price growth during the real estate bubble, according to Arnold Slesers, an associate economist at Moody’s. The home price correction in many of these cities will be severe as unsold new homes and leaps in foreclosures add to already big inventories.”

This might help people get into a house but as far as helping those who are losing their homes, I don’t think it will help. Maybe it will help them afford a different house. After their credit is ruined by foreclosure, I don’t understand how they would be considered for a mortgage loan.