The Federal Reserve will meet today and around 2:15 p.m. EDT, we will all know what steps they will take to calm the turbulent waters. My wild guess - they will probably make a cut in the rate especially since core inflation came in as expected this morning. Update 2:15 - wrong again. The fed keeps rate at 2% (prime is now at 5% for most banks).
I thought the mortgage industry was in for a long cold winter, but I didn't think it would start in September. Fannie and Freddie being taken over by the government is such a huge pill to swallow. Why aren't more people screaming for the government to appoint an independent council to look into the fall? Maybe it has something to do with the political connections (both Democrats and Republicans have dirty hands in this one). I think most outside of the industry really don't understand fannie and freddie so it does not make it a big deal. The difference between this fiasco and Enron - everyone understood their 401k and how much that loss cost them. The public might not understand fannie and freddie - but we will pay for their mistakes for a very long time.
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