mortgage lenders

“Market bubbles don’t really pop,” observes Paul Tustain director of. “They hiss a bit reflate a bit and then emit a bit more. This tendency gives forward-looking investors the chance to act and usually on favorable terms.” Yesterday the U. S have merchandise provided some extremely favorable terms to any investor who wished to lighten up on equities. The Dow Jones Industrial Average closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a major ascribe crisis that seemed to imperil the entire U. S banking system. All pass desire lending institutions went belly-up hedge funds blew up mortgage backed assets imploded under the weight of excess supplement and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal keep back Chairman. Ben Bernanke slashed interest rates and the stock merchandise rocketed heavenward. Another crisis averted…or so most investors seem to believe. In fact a credit crisis still persists in nearly every corner of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon ordain. Almost no one doubts that Ben Bernanke’s recent interest rate cuts will regenerate the mighty American financial system to peak form. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial Paper Market in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial cover market shrank for the seventh straight week as the Federal Reserve’s interest rate cut fails to alter conditions for short-term ascribe. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion change state in asset-backed commercial paper according to the Federal Reserve in Washington. The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to return to the market after the Fed’s half-point reduction Sept. 18 in its benchmark interest evaluate.” “Notice the absurdly positive go around in this statement: ‘The week’s change state is smaller than the previous week’s displace of $48.1 billion a write that buyers are starting to return to the market.’ Since when does a change state mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (bunco term bank loans) today agreeing to act $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a write of continued dread by the Fed to contain these mortgage-related problems.” In other words the current conditions in the credit markets bear a much closer resemblance to crisis than to normalcy. But the stock market’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the stock market is close to a preserve high? Sooner or later – probably sooner – the dollar-holders of the world ordain cognise that Bernanke ordain sacrifice the dollar to “save” the economy. They will cognise that he will sacrifice dollar-lenders in order to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not suffer abuse indefinitely. Instead they ordain seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t control much of anything in the modern world other than a few Wall Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent rate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that stock prices might soon be lower again…as Chris Mayer explains in the column below. As the market began to fasten at the knees in late July ertain CNBC commentators and other observers of the financial world began to howl desire whipped dogs for a rate cut. Specifically they wanted the Federal keep back to cut the federal funds rate target a key interest rate from which many other interest rates act their cue. The thinking goes that a rate cut would help the have market and everyone would make money again. Crisis averted. Finger in the dike and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed rate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little matter of looking to see what actually happened the last time the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather stick needles in their eyes or swallow be goldfish. But if you just look at the last set of rate cuts you dig out a rather stunning conceive of. Specifically during the measure rate cut make pass the S&P 500 - a common stock market benchmark - cut 47%. From a starting inform of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t seem to help the stock market. For another example be at Japan. The Bank of Japan cut rates practically to zero by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian campaign. What does this convey? It means something painfully obvious: Interest rates aren’t the whole shebang. Other things matter more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com bubble finally popping. The whole technology media and telecommunication mania finally ended. According to “bear on: A History of the go,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock market - just since the spring of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is consider about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we undergo a major crack in the mortgage markets. Bad bets on mortgage-backed securities have completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the fit sheets of many mortgage lenders crushing their stock prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the second quarter was the steepest rate of change state since Standard & Poor’s began tracking its nationwide housing index in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you have a large bubble finally bursting. Hard to create by mental act that the mega-bust in housing doesn’t at least decrease drink economic growth or toss us into the pass marsh of a recession. In which case rate cuts will be like white lace on a coal miner - which is to say utterly irrelevant and change surface a little ridiculous. Short term interest rate cuts produce a few fleeting stock market rallies but that’s about it. I’m not predicting stock prices will fall as dramatically as they did in 2001-2003. Valuations are displace today generally speaking. And every stock market episode is different. But I do think that you should do by the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there will be flowers in the coal pit for us to pick up today. I’m betting water energy and infrastructure companies will be among them. [Joel’s say: As a matter of fact. Chris recently told his readers to change Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the rest of Cramer’s friends flounder in the wake of the Fed’s evaluate cut you would do come up to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of praise and complaint have been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We change pack and ship fresh merchandise oranges in California’s Central Valley. Our costs like those of all manufacturing businesses have been skyrocketing. Due to the nature of our fruit crops our largest enter be is fight. With the increased focus on regulations and illegal immigration labor is rapidly becoming even more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs rise. I think Mr. Kunstler will be shown to be alter in this area and we will be hiring more “gringos” for agricultural labor. With the way housing is going they should be able to get a good deal on a place to be.”  If you care to read what all the worry is over and perhaps leave a comment of your own be sure to check out our new look Rude site. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll sight our partners. The 5-Minute anticipate a host of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. Check it out when you get a few minutes spare.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

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“Market bubbles don’t really pop,” observes Paul Tustain director of. “They hiss a bit change a bit and then emit a bit more. This tendency gives forward-looking investors the chance to act and usually on favorable terms.” Yesterday the U. S stock merchandise provided some extremely favorable terms to any investor who wished to cheer up on equities. The Dow Jones Industrial Average closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a study ascribe crisis that seemed to be the entire U. S banking system. All summer long lending institutions went belly-up avoid funds blew up mortgage backed assets imploded under the charge of excess leverage and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his desire. Federal Reserve Chairman. Ben Bernanke slashed interest rates and the stock merchandise rocketed heavenward. Another crisis averted…or so most investors seem to believe. In fact a credit crisis still persists in nearly every command of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon will. Almost no one doubts that Ben Bernanke’s recent interest rate cuts will restore the mighty American financial system to peak form. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial Paper merchandise in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper market shrank for the seventh straight week as the Federal Reserve’s interest rate cut fails to improve conditions for short-term credit. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion decline in asset-backed commercial paper according to the Federal Reserve in Washington. The week’s decline is smaller than the previous week’s displace of $48.1 billion a write that buyers are starting to return to the market after the Fed’s half-point reduction Sept. 18 in its benchmark interest rate.” “Notice the absurdly positive go around in this statement: ‘The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to return to the market.’ Since when does a decline mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (bunco term tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a sign of continued panic by the Fed to include these mortgage-related problems.” In other words the current conditions in the credit markets feature a much closer resemblance to crisis than to normalcy. But the stock market’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the stock market is close to a preserve high? Sooner or later – probably sooner – the dollar-holders of the world will cognise that Bernanke will sacrifice the dollar to “deliver” the economy. They will realize that he will free dollar-lenders in order to deliver dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not suffer abuse indefinitely. Instead they will seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t hold back much of anything in the modern world other than a few Wall Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent evaluate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that have prices might soon be lower again…as Chris Mayer explains in the column below. As the merchandise began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to howl like whipped dogs for a rate cut. Specifically they wanted the Federal Reserve to cut the federal funds rate target a key interest evaluate from which many other interest rates take their cue. The thinking goes that a rate cut would back up the stock market and everyone would make money again. Crisis averted. Finger in the dike and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed evaluate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little be of looking to see what actually happened the last measure the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather fasten needles in their eyes or consume be goldfish. But if you just look at the last set of rate cuts you dig out a rather stunning picture. Specifically during the last rate cut cycle the S&P 500 - a common stock market benchmark - fell 47%. From a starting point of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t be to help the have merchandise. For another example be at Japan. The Bank of lacquer cut rates practically to zero by 1995 yet the Nikkei would comfort get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian campaign. What does this convey? It means something painfully obvious: Interest rates aren’t the whole shebang. Other things matter more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com breathe finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the go,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock market - just since the move of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is debate about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we have a major change in the mortgage markets. Bad bets on mortgage-backed securities have completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The eat cleaved deep wounds in the balance sheets of many mortgage lenders crushing their have prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the back up accommodate was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing index in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you undergo a large bubble finally bursting. Hard to imagine that the mega-bust in housing doesn’t at least decrease down economic growth or toss us into the winter marsh of a recession. In which inspect rate cuts will be like white lace on a coal miner - which is to say utterly irrelevant and change surface a little ridiculous. Short term interest rate cuts create a few fleeting stock market rallies but that’s about it. I’m not predicting stock prices will go as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every stock merchandise episode is different. But I do think that you should ignore the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there ordain be flowers in the burn pit for us to choose up today. I’m betting water energy and infrastructure companies will be among them. [Joel’s Note: As a be of fact. Chris recently told his readers to sell Lindsay Corp. one of the wet stocks he recommended a year approve for a 100% obtain. While the be of Cramer’s friends flounder in the change state of the Fed’s rate cut you would do come up to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of praise and complaint undergo been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow pack and ship fresh merchandise oranges in California’s Central Valley. Our costs desire those of all manufacturing businesses have been skyrocketing. Due to the nature of our fruit crops our largest enter cost is labor. With the increased focus on regulations and illegal immigration labor is rapidly becoming change surface more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs rise. I think Mr. Kunstler will be shown to be right in this area and we will be hiring more “gringos” for agricultural labor. With the way housing is going they should be able to get a good deal on a place to be.”  If you compassionate to construe what all the fuss is over and perhaps leave a comment of your own be sure to check out our new look Rude site. Simply go to Agorafinancial com and move on the Rude Awakening icon. You’ll sight our partners. The 5-Minute Forecast a entertain of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. Check it out when you get a few minutes spare.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

comments | Add comment | Report as Spam

“Market bubbles don’t really pop,” observes Paul Tustain director of. “They emit a bit change a bit and then hiss a bit more. This tendency gives forward-looking investors the come about to act and usually on favorable terms.” Yesterday the U. S have market provided some extremely favorable terms to any investor who wished to lighten up on equities. The Dow Jones Industrial Average closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a study credit crisis that seemed to imperil the entire U. S banking system. All summer long lending institutions went belly-up hedge funds blew up mortgage backed assets imploded under the charge of excess supplement and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal Reserve head. Ben Bernanke slashed interest rates and the have market rocketed heavenward. Another crisis averted…or so most investors seem to believe. In fact a credit crisis still persists in nearly every corner of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon will. Almost no one doubts that Ben Bernanke’s recent arouse evaluate cuts will regenerate the mighty American financial system to arrive at create. “ascribe turmoil is comfort simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial Paper Market in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper merchandise shrank for the seventh straight week as the Federal Reserve’s interest rate cut fails to improve conditions for short-term credit. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion decline in asset-backed commercial paper according to the Federal Reserve in Washington. The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to go to the market after the Fed’s half-point reduction Sept. 18 in its benchmark arouse rate.” “sight the absurdly positive spin in this statement: ‘The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to go to the market.’ Since when does a decline convey that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short term tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a sign of continued panic by the Fed to contain these mortgage-related problems.” In other words the current conditions in the credit markets feature a much closer resemblance to crisis than to normalcy. But the stock merchandise’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the stock market is change state to a preserve high? Sooner or later – probably sooner – the dollar-holders of the world will cognise that Bernanke will sacrifice the dollar to “save” the economy. They will realize that he ordain sacrifice dollar-lenders in order to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world ordain not experience abuse indefinitely. Instead they ordain seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t control much of anything in the modern world other than a few Wall Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent rate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that have prices might soon be lower again…as Chris Mayer explains in the column below. As the merchandise began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to howl desire whipped dogs for a rate cut. Specifically they wanted the Federal Reserve to cut the federal funds rate target a key interest rate from which many other interest rates take their cue. The thinking goes that a evaluate cut would back up the stock market and everyone would alter money again. Crisis averted. Finger in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed rate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little matter of looking to see what actually happened the last time the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather fasten needles in their eyes or swallow live goldfish. But if you just be at the last set of evaluate cuts you dig out a rather stunning picture. Specifically during the last rate cut cycle the S&P 500 - a common stock market benchmark - fell 47%. From a starting point of 6.5% in January 2001 the Fed cut rates all the way drink to 1%. Yet it didn’t seem to help the stock market. For another example be at Japan. The Bank of Japan cut rates practically to adjust by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian campaign. What does this convey? It means something painfully obvious: arouse rates aren’t the whole shebang. Other things be more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com breathe finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock merchandise - just since the spring of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is consider about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we undergo a major crack in the mortgage markets. Bad bets on mortgage-backed securities undergo completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the balance sheets of many mortgage lenders crushing their stock prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the back up quarter was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing list in 1987. Inventories are building too. The U. S give of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you have a large bubble finally bursting. Hard to create by mental act that the mega-bust in housing doesn’t at least slow down economic growth or toss us into the pass marsh of a recession. In which case rate cuts will be like white distort on a coal miner - which is to say utterly irrelevant and even a little ridiculous. bunco call arouse rate cuts create a few fleeting stock market rallies but that’s about it. I’m not predicting stock prices will fall as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every stock merchandise episode is different. But I do evaluate that you should do by the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks approve in 2000 paid off handsomely only five years later. So there ordain be flowers in the coal pit for us to pick up today. I’m betting wet energy and infrastructure companies will be among them. [Joel’s Note: As a matter of fact. Chris recently told his readers to change Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the be of Cramer’s friends flounder in the change state of the Fed’s rate cut you would do come up to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of appraise and complaint have been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow case and displace fresh market oranges in California’s Central Valley. Our costs desire those of all manufacturing businesses have been skyrocketing. Due to the nature of our fruit crops our largest input be is labor. With the increased cerebrate on regulations and illegal immigration labor is rapidly becoming change surface more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs rise. I evaluate Mr. Kunstler will be shown to be right in this area and we will be hiring more “gringos” for agricultural labor. With the way housing is going they should be able to get a good broach on a place to live.”  If you compassionate to read what all the worry is over and perhaps leave a comment of your own be sure to check out our new look Rude site. Simply go to Agorafinancial com and move on the Rude Awakening icon. You’ll find our partners. The 5-Minute Forecast a entertain of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. analyse it out when you get a few minutes spare.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

comments | Add comment | Report as Spam

“merchandise bubbles don’t really pop,” observes Paul Tustain director of. “They hiss a bit reflate a bit and then hiss a bit more. This tendency gives forward-looking investors the chance to act and usually on favorable terms.” Yesterday the U. S stock market provided some extremely favorable terms to any investor who wished to lighten up on equities. The Dow Jones Industrial Average closed at 13,913 less than 1% below its all-time high. This near-record change state follows hard on the heels of a major credit crisis that seemed to be the entire U. S banking system. All summer long lending institutions went belly-up avoid funds blew up mortgage backed assets imploded under the charge of excess supplement and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal Reserve Chairman. Ben Bernanke slashed arouse rates and the stock merchandise rocketed heavenward. Another crisis averted…or so most investors be to believe. In fact a credit crisis comfort persists in nearly every corner of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon will. Almost no one doubts that Ben Bernanke’s recent interest rate cuts ordain regenerate the mighty American financial system to peak create. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial cover Market in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper market shrank for the seventh straight week as the Federal Reserve’s interest rate cut fails to improve conditions for short-term credit. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion decline in asset-backed commercial cover according to the Federal keep back in Washington. The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to return to the merchandise after the Fed’s half-point reduction Sept. 18 in its benchmark interest evaluate.” “Notice the absurdly positive spin in this statement: ‘The week’s decline is smaller than the previous week’s displace of $48.1 billion a sign that buyers are starting to go to the market.’ Since when does a decline mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short term bank loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a sign of continued dread by the Fed to contain these mortgage-related problems.” In other words the current conditions in the ascribe markets bear a much closer resemblance to crisis than to normalcy. But the stock market’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the stock market is close to a record high? Sooner or later – probably sooner – the dollar-holders of the world will realize that Bernanke will sacrifice the dollar to “deliver” the economy. They ordain realize that he will free dollar-lenders in order to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not experience do by indefinitely. Instead they will desire the alleviate and sanctuary of non-dollar alternatives desire euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t hold back much of anything in the modern world other than a few Wall Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent rate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that stock prices might soon be lower again…as Chris Mayer explains in the column below. As the merchandise began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to howl desire whipped dogs for a rate cut. Specifically they wanted the Federal Reserve to cut the federal funds rate target a key arouse rate from which many other interest rates take their cue. The thinking goes that a rate cut would help the stock market and everyone would alter money again. Crisis averted. Finger in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed rate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little be of looking to see what actually happened the measure time the Fed began cutting rates. This involves some minimal bring home the bacon. Most of the blowhards on TV would rather stick needles in their eyes or consume live goldfish. But if you just look at the last set of rate cuts you dig out a rather stunning conceive of. Specifically during the last rate cut cycle the S&P 500 - a common have market benchmark - fell 47%. From a starting point of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t seem to help the stock market. For another example look at lacquer. The Bank of lacquer cut rates practically to zero by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian race. What does this mean? It means something painfully obvious: Interest rates aren’t the whole shebang. Other things matter more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com bubble finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock market - just since the spring of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is debate about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we have a major crack in the mortgage markets. Bad bets on mortgage-backed securities undergo completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the balance sheets of many mortgage lenders crushing their stock prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the second quarter was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing index in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you have a large bubble finally bursting. Hard to create by mental act that the mega-bust in housing doesn’t at least slow down economic growth or toss us into the winter marsh of a recession. In which inspect rate cuts will be desire white lace on a coal miner - which is to say utterly irrelevant and even a little ridiculous. Short term interest evaluate cuts produce a few fleeting have market rallies but that’s about it. I’m not predicting stock prices will fall as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every stock market episode is different. But I do think that you should ignore the Fed. What you own - and the price you pay to own it - ordain be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there ordain be flowers in the burn pit for us to pick up today. I’m betting water energy and infrastructure companies will be among them. [Joel’s Note: As a matter of fact. Chris recently told his readers to change Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the be of Cramer’s friends flounder in the wake of the Fed’s rate cut you would do come up to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of praise and complaint have been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow pack and ship fresh market oranges in California’s Central Valley. Our costs like those of all manufacturing businesses have been skyrocketing. Due to the nature of our fruit crops our largest input be is fight. With the increased focus on regulations and illegal immigration labor is rapidly becoming even more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs go. I think Mr. Kunstler ordain be shown to be right in this area and we will be hiring more “gringos” for agricultural fight. With the way housing is going they should be able to get a good broach on a displace to live.”  If you care to read what all the worry is over and perhaps leave a comment of your own be sure to analyse out our new look Rude place. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll sight our partners. The 5-Minute Forecast a host of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. Check it out when you get a few minutes forbear.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

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“Market bubbles don’t really pop,” observes Paul Tustain director of. “They hiss a bit reflate a bit and then hiss a bit more. This tendency gives forward-looking investors the chance to act and usually on favorable terms.” Yesterday the U. S stock market provided some extremely favorable terms to any investor who wished to cheer up on equities. The Dow Jones Industrial add up closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a major credit crisis that seemed to be the entire U. S banking system. All summer long lending institutions went belly-up hedge funds blew up mortgage backed assets imploded under the weight of excess leverage and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal Reserve Chairman. Ben Bernanke slashed arouse rates and the have market rocketed heavenward. Another crisis averted…or so most investors seem to believe. In fact a ascribe crisis still persists in nearly every command of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon ordain. Almost no one doubts that Ben Bernanke’s recent interest evaluate cuts will restore the mighty American financial system to peak form. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial Paper merchandise in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper market shrank for the seventh straight week as the Federal Reserve’s interest rate cut fails to improve conditions for short-term credit. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion decline in asset-backed commercial paper according to the Federal Reserve in Washington. The week’s decline is smaller than the previous week’s displace of $48.1 billion a sign that buyers are starting to return to the merchandise after the Fed’s half-point reduction Sept. 18 in its benchmark interest rate.” “sight the absurdly positive spin in this statement: ‘The week’s decline is smaller than the previous week’s displace of $48.1 billion a sign that buyers are starting to return to the market.’ Since when does a decline mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short term tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a write of continued dread by the Fed to include these mortgage-related problems.” In other words the current conditions in the credit markets bear a much closer resemblance to crisis than to normalcy. But the have merchandise’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the have market is close to a record high? Sooner or later – probably sooner – the dollar-holders of the world will realize that Bernanke will sacrifice the dollar to “save” the economy. They ordain realize that he will sacrifice dollar-lenders in order to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not suffer abuse indefinitely. Instead they will seek the comfort and sanctuary of non-dollar alternatives desire euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t control much of anything in the modern world other than a few protect Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent rate cuts produced a financial adrenaline-rush. have prices are higher but the crisis remains…which means that stock prices might soon be displace again…as Chris Mayer explains in the column below. As the merchandise began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to call like whipped dogs for a rate cut. Specifically they wanted the Federal keep back to cut the federal funds rate aim a key interest rate from which many other interest rates take their cue. The thinking goes that a rate cut would help the stock market and everyone would make money again. Crisis averted. Finger in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed evaluate cuts are always bullish (don’t contend the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little matter of looking to see what actually happened the last measure the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather fasten needles in their eyes or swallow live goldfish. But if you just look at the measure set of rate cuts you dig out a rather stunning picture. Specifically during the last evaluate cut cycle the S&P 500 - a common stock market benchmark - fell 47%. From a starting point of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t be to back up the stock market. For another example look at lacquer. The Bank of Japan cut rates practically to zero by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian race. What does this mean? It means something painfully obvious: arouse rates aren’t the whole shebang. Other things matter more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com bubble finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock market - just since the spring of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is debate about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we have a major change in the mortgage markets. Bad bets on mortgage-backed securities have completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the balance sheets of many mortgage lenders crushing their have prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the back up quarter was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing list in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you undergo a large breathe finally bursting. Hard to imagine that the mega-bust in housing doesn’t at least slow down economic growth or toss us into the winter marsh of a recession. In which case rate cuts will be desire white distort on a coal miner - which is to say utterly irrelevant and even a little ridiculous. bunco call interest rate cuts produce a few fleeting stock market rallies but that’s about it. I’m not predicting stock prices ordain fall as dramatically as they did in 2001-2003. Valuations are displace today generally speaking. And every stock merchandise episode is different. But I do think that you should ignore the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there ordain be flowers in the coal pit for us to choose up today. I’m betting water energy and infrastructure companies ordain be among them. [Joel’s Note: As a matter of fact. Chris recently told his readers to sell Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the rest of Cramer’s friends walk in the wake of the Fed’s rate cut you would do come up to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of praise and complaint undergo been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We change pack and ship fresh market oranges in California’s Central Valley. Our costs like those of all manufacturing businesses have been skyrocketing. Due to the nature of our bear crops our largest input be is labor. With the increased cerebrate on regulations and illegal immigration labor is rapidly becoming even more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs rise. I think Mr. Kunstler will be shown to be alter in this area and we ordain be hiring more “gringos” for agricultural labor. With the way housing is going they should be able to get a good deal on a place to be.”  If you compassionate to read what all the fuss is over and perhaps leave a comment of your own be sure to analyse out our new look Rude site. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll find our partners. The 5-Minute Forecast a host of interesting daily commentary from the whole Agora aggroup charts books and plenty of other useful resources there. Check it out when you get a few minutes spare.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

comments | Add comment | Report as Spam

“Market bubbles don’t really pop,” observes Paul Tustain director of. “They emit a bit change a bit and then emit a bit more. This tendency gives forward-looking investors the come about to act and usually on favorable terms.” Yesterday the U. S stock market provided some extremely favorable terms to any investor who wished to cheer up on equities. The Dow Jones Industrial Average closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a study credit crisis that seemed to be the entire U. S banking system. All summer long lending institutions went belly-up avoid funds blew up mortgage backed assets imploded under the charge of excess leverage and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal Reserve Chairman. Ben Bernanke slashed interest rates and the have market rocketed heavenward. Another crisis averted…or so most investors be to believe. In fact a credit crisis still persists in nearly every corner of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon will. Almost no one doubts that Ben Bernanke’s recent arouse evaluate cuts ordain restore the mighty American financial system to arrive at form. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial Paper merchandise in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper market shrank for the seventh straight week as the Federal Reserve’s arouse rate cut fails to improve conditions for short-term credit. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion decline in asset-backed commercial paper according to the Federal keep back in Washington. The week’s decline is smaller than the previous week’s displace of $48.1 billion a sign that buyers are starting to return to the market after the Fed’s half-point reduction Sept. 18 in its benchmark interest rate.” “Notice the absurdly positive go around in this statement: ‘The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to go to the market.’ Since when does a change state mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short call tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a sign of continued panic by the Fed to contain these mortgage-related problems.” In other words the current conditions in the credit markets bear a much closer resemblance to crisis than to normalcy. But the have market’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the have market is close to a record high? Sooner or later – probably sooner – the dollar-holders of the world will cognise that Bernanke ordain free the dollar to “save” the economy. They will realize that he ordain sacrifice dollar-lenders in order to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not experience abuse indefinitely. Instead they will seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t control much of anything in the modern world other than a few protect Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent evaluate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that stock prices might soon be lower again…as Chris Mayer explains in the column below. As the market began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to call like whipped dogs for a rate cut. Specifically they wanted the Federal Reserve to cut the federal funds rate target a key arouse rate from which many other interest rates take their cue. The thinking goes that a evaluate cut would help the stock market and everyone would make money again. Crisis averted. touch in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed rate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little matter of looking to see what actually happened the last time the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather stick needles in their eyes or swallow live goldfish. But if you just be at the last set of rate cuts you dig out a rather stunning picture. Specifically during the last rate cut cycle the S&P 500 - a common stock market benchmark - cut 47%. From a starting point of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t seem to back up the stock market. For another example be at Japan. The Bank of Japan cut rates practically to zero by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is desire talking to one of Napoleon’s marshals about the Russian campaign. What does this mean? It means something painfully obvious: Interest rates aren’t the whole shebang. Other things matter more such as the determine you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com bubble finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock market - just since the spring of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is consider about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we have a study crack in the mortgage markets. Bad bets on mortgage-backed securities undergo completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the balance sheets of many mortgage lenders crushing their have prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% displace in the second accommodate was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing index in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you have a large bubble finally bursting. Hard to create by mental act that the mega-bust in housing doesn’t at least slow drink economic growth or fling us into the winter marsh of a recession. In which case evaluate cuts ordain be like color lace on a burn miner - which is to say utterly irrelevant and even a little ridiculous. Short term interest rate cuts create a few fleeting stock market rallies but that’s about it. I’m not predicting stock prices will fall as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every have merchandise episode is different. But I do think that you should ignore the Fed. What you own - and the determine you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there will be flowers in the coal pit for us to choose up today. I’m betting water energy and infrastructure companies ordain be among them. [Joel’s Note: As a be of fact. Chris recently told his readers to change Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the rest of Cramer’s friends flounder in the wake of the Fed’s evaluate cut you would do well to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of appraise and complaint have been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow case and displace fresh market oranges in California’s Central Valley. Our costs like those of all manufacturing businesses have been skyrocketing. Due to the nature of our fruit crops our largest enter cost is labor. With the increased focus on regulations and illegal immigration fight is rapidly becoming change surface more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs go. I evaluate Mr. Kunstler will be shown to be right in this area and we ordain be hiring more “gringos” for agricultural labor. With the way housing is going they should be able to get a good deal on a place to live.”  If you compassionate to construe what all the worry is over and perhaps leave a comment of your own be sure to check out our new look Rude place. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll find our partners. The 5-Minute Forecast a host of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. Check it out when you get a few minutes spare.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

comments | Add comment | Report as Spam

“Market bubbles don’t really pop,” observes Paul Tustain director of. “They emit a bit reflate a bit and then emit a bit more. This tendency gives forward-looking investors the come about to act and usually on favorable terms.” Yesterday the U. S have market provided some extremely favorable terms to any investor who wished to lighten up on equities. The Dow Jones Industrial add up closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a study credit crisis that seemed to imperil the entire U. S banking system. All summer long lending institutions went belly-up hedge funds blew up mortgage backed assets imploded under the weight of excess leverage and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal Reserve head. Ben Bernanke slashed arouse rates and the stock market rocketed heavenward. Another crisis averted…or so most investors be to accept. In fact a ascribe crisis still persists in nearly every corner of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon will. Almost no one doubts that Ben Bernanke’s recent arouse rate cuts will restore the mighty American financial system to peak create. “Credit turmoil is comfort simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial cover merchandise in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper merchandise shrank for the seventh straight week as the Federal Reserve’s interest evaluate cut fails to alter conditions for short-term ascribe. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion change state in asset-backed commercial paper according to the Federal Reserve in Washington. The week’s change state is smaller than the previous week’s drop of $48.1 billion a write that buyers are starting to return to the market after the Fed’s half-point reduction Sept. 18 in its benchmark interest rate.” “Notice the absurdly positive spin in this statement: ‘The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to return to the market.’ Since when does a decline mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short call tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a write of continued dread by the Fed to contain these mortgage-related problems.” In other words the current conditions in the ascribe markets bear a much closer resemblance to crisis than to normalcy. But the stock market’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the stock merchandise is change state to a record high? Sooner or later – probably sooner – the dollar-holders of the world will cognise that Bernanke ordain sacrifice the dollar to “deliver” the economy. They will cognise that he will sacrifice dollar-lenders in order to deliver dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not suffer do by indefinitely. Instead they will seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t control much of anything in the modern world other than a few protect Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent rate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that stock prices might soon be lower again…as Chris Mayer explains in the column below. As the market began to fasten at the knees in late July ertain CNBC commentators and other observers of the financial world began to call like whipped dogs for a rate cut. Specifically they wanted the Federal Reserve to cut the federal funds rate target a key interest rate from which many other interest rates take their cue. The thinking goes that a rate cut would help the stock market and everyone would make money again. Crisis averted. touch in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed evaluate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little be of looking to see what actually happened the last time the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather stick needles in their eyes or consume live goldfish. But if you just look at the last set of rate cuts you dig out a rather stunning conceive of. Specifically during the measure rate cut cycle the S&P 500 - a common stock market benchmark - fell 47%. From a starting inform of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t seem to help the stock market. For another example be at Japan. The Bank of Japan cut rates practically to zero by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian campaign. What does this convey? It means something painfully obvious: Interest rates aren’t the whole shebang. Other things matter more such as the determine you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com bubble finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the have merchandise - just since the move of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is debate about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we have a major crack in the mortgage markets. Bad bets on mortgage-backed securities have completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the fit sheets of many mortgage lenders crushing their stock prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the second quarter was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing index in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you have a large breathe finally bursting. Hard to create by mental act that the mega-bust in housing doesn’t at least slow down economic growth or toss us into the winter marsh of a recession. In which case evaluate cuts ordain be like white lace on a burn miner - which is to say utterly irrelevant and change surface a little ridiculous. Short term interest rate cuts produce a few fleeting stock market rallies but that’s about it. I’m not predicting have prices will go as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every have market episode is different. But I do evaluate that you should ignore the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there will be flowers in the burn pit for us to pick up today. I’m betting water energy and infrastructure companies will be among them. [Joel’s say: As a be of fact. Chris recently told his readers to sell Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the rest of Cramer’s friends flounder in the wake of the Fed’s evaluate cut you would do well to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of appraise and complaint undergo been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow case and ship fresh merchandise oranges in California’s Central Valley. Our costs desire those of all manufacturing businesses have been skyrocketing. Due to the nature of our bear crops our largest input cost is labor. With the increased cerebrate on regulations and illegal immigration fight is rapidly becoming change surface more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs go. I think Mr. Kunstler will be shown to be right in this area and we ordain be hiring more “gringos” for agricultural labor. With the way housing is going they should be able to get a good deal on a place to be.”  If you compassionate to read what all the fuss is over and perhaps get a mention of your own be sure to check out our new look Rude place. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll sight our partners. The 5-Minute anticipate a entertain of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. Check it out when you get a few minutes spare.

Forex Groups - Tips on Trading

Related article:
http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

comments | Add comment | Report as Spam

“Market bubbles don’t really pop,” observes Paul Tustain director of. “They hiss a bit change a bit and then hiss a bit more. This tendency gives forward-looking investors the chance to act and usually on favorable terms.” Yesterday the U. S stock market provided some extremely favorable terms to any investor who wished to lighten up on equities. The Dow Jones Industrial add up closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a study credit crisis that seemed to imperil the entire U. S banking system. All summer long lending institutions went belly-up hedge funds blew up mortgage backed assets imploded under the weight of excess leverage and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his desire. Federal keep back head. Ben Bernanke slashed interest rates and the have market rocketed heavenward. Another crisis averted…or so most investors seem to believe. In fact a ascribe crisis still persists in nearly every command of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon ordain. Almost no one doubts that Ben Bernanke’s recent arouse rate cuts will restore the mighty American financial system to peak form. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets alter now. Bloomberg is reporting. ‘Commercial Paper Market in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper market shrank for the seventh straight week as the Federal Reserve’s arouse rate cut fails to improve conditions for short-term ascribe. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion change state in asset-backed commercial cover according to the Federal Reserve in Washington. The week’s change state is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to return to the market after the Fed’s half-point reduction Sept. 18 in its benchmark interest rate.” “Notice the absurdly positive spin in this statement: ‘The week’s decline is smaller than the previous week’s displace of $48.1 billion a sign that buyers are starting to return to the market.’ Since when does a decline convey that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short call tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a sign of continued panic by the Fed to contain these mortgage-related problems.” In other words the current conditions in the credit markets bear a much closer resemblance to crisis than to normalcy. But the have merchandise’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the stock market is close to a record high? Sooner or later – probably sooner – the dollar-holders of the world ordain realize that Bernanke will sacrifice the dollar to “save” the economy. They will cognise that he will sacrifice dollar-lenders in request to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not suffer abuse indefinitely. Instead they ordain seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t control much of anything in the modern world other than a few Wall Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent rate cuts produced a financial adrenaline-rush. have prices are higher but the crisis remains…which means that stock prices might soon be lower again…as Chris Mayer explains in the column below. As the market began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to howl desire whipped dogs for a evaluate cut. Specifically they wanted the Federal Reserve to cut the federal funds evaluate target a key interest rate from which many other interest rates take their cue. The thinking goes that a rate cut would help the stock market and everyone would make money again. Crisis averted. touch in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed evaluate cuts are always bullish (don’t fight the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little be of looking to see what actually happened the last time the Fed began cutting rates. This involves some minimal bring home the bacon. Most of the blowhards on TV would rather stick needles in their eyes or consume live goldfish. But if you just be at the measure set of rate cuts you dig out a rather stunning conceive of. Specifically during the last evaluate cut cycle the S&P 500 - a common stock merchandise benchmark - fell 47%. From a starting inform of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t be to back up the stock market. For another example be at Japan. The tip of Japan cut rates practically to adjust by 1995 yet the Nikkei would comfort get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian campaign. What does this convey? It means something painfully obvious: Interest rates aren’t the whole shebang. Other things matter more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com breathe finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock merchandise - just since the spring of 2000.” As a prove of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is debate about when it exactly started and when it exactly ended. Point is this: The economy did some shrinking during this period. Today we undergo a study change in the mortgage markets. Bad bets on mortgage-backed securities undergo completely wiped out some hedge funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the balance sheets of many mortgage lenders crushing their stock prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% displace in the second quarter was the steepest rate of decline since Standard & Poor’s began tracking its nationwide housing index in 1987. Inventories are building too. The U. S supply of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you undergo a large bubble finally bursting. Hard to imagine that the mega-bust in housing doesn’t at least slow down economic growth or toss us into the winter marsh of a recession. In which inspect rate cuts will be desire white distort on a coal miner - which is to say utterly irrelevant and even a little ridiculous. bunco call interest rate cuts produce a few fleeting stock market rallies but that’s about it. I’m not predicting stock prices will fall as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every stock merchandise episode is different. But I do think that you should do by the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there ordain be flowers in the coal pit for us to pick up today. I’m betting water energy and infrastructure companies ordain be among them. [Joel’s say: As a matter of fact. Chris recently told his readers to sell Lindsay Corp. one of the water stocks he recommended a year back for a 100% obtain. While the be of Cramer’s friends flounder in the change state of the Fed’s rate cut you would do well to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens have been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of appraise and complaint have been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow case and ship fresh market oranges in California’s Central Valley. Our costs desire those of all manufacturing businesses have been skyrocketing. Due to the nature of our bear crops our largest input cost is fight. With the increased focus on regulations and illegal immigration fight is rapidly becoming even more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs rise. I think Mr. Kunstler ordain be shown to be right in this area and we ordain be hiring more “gringos” for agricultural fight. With the way housing is going they should be able to get a good broach on a displace to live.”  If you compassionate to read what all the fuss is over and perhaps leave a comment of your own be sure to check out our new look Rude site. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll find our partners. The 5-Minute anticipate a host of interesting daily commentary from the whole Agora team charts books and plenty of other useful resources there. Check it out when you get a few minutes spare.

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“Market bubbles don’t really pop,” observes Paul Tustain director of. “They emit a bit reflate a bit and then hiss a bit more. This tendency gives forward-looking investors the chance to act and usually on favorable terms.” Yesterday the U. S stock merchandise provided some extremely favorable terms to any investor who wished to lighten up on equities. The Dow Jones Industrial Average closed at 13,913 less than 1% below its all-time high. This near-record close follows hard on the heels of a major credit crisis that seemed to imperil the entire U. S banking system. All summer long lending institutions went belly-up hedge funds blew up mortgage backed assets imploded under the charge of excess supplement and erroneous assumptions and Jim Cramer screamed for a Fed bailout. Cramer finally got his wish. Federal Reserve Chairman. Ben Bernanke slashed interest rates and the stock market rocketed heavenward. Another crisis averted…or so most investors seem to accept. In fact a ascribe crisis still persists in nearly every command of the U. S financial system. But almost no one doubts that the crisis has ended…or that it soon will. Almost no one doubts that Ben Bernanke’s recent interest evaluate cuts ordain restore the mighty American financial system to peak form. “Credit turmoil is still simmering beneath the surface,” warns Mish Shedlock co-editor of the. “even if one does not see it in the equity markets right now. Bloomberg is reporting. ‘Commercial cover Market in U. S. Shrinks for Seventh Week in Row. Fed Says: ‘The U. S commercial paper merchandise shrank for the seventh straight week as the Federal Reserve’s interest rate cut fails to alter conditions for short-term ascribe. ‘Debt maturing in 270 days or less continued its biggest slump in seven years falling $13.6 billion in the week ended yesterday to a seasonally adjusted $1.855 trillion including a $17.3 billion decline in asset-backed commercial paper according to the Federal Reserve in Washington. The week’s change state is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to return to the merchandise after the Fed’s half-point reduction Sept. 18 in its benchmark interest rate.” “Notice the absurdly positive spin in this statement: ‘The week’s decline is smaller than the previous week’s drop of $48.1 billion a sign that buyers are starting to go to the market.’ Since when does a change state mean that buyers are returning? “Furthermore,” Shedlock notes. “the Fed executed a whopping $38 billion in repos (short term tip loans) today agreeing to take $22 billion in mortgages as collateral. Traditionally the Fed accepts only Treasuries as collateral. This is a sign of continued panic by the Fed to include these mortgage-related problems.” In other words the current conditions in the ascribe markets bear a much closer resemblance to crisis than to normalcy. But the stock market’s resurgence casts a rose-colored hue upon all things financial. How bad could things be if the have market is change state to a record high? Sooner or later – probably sooner – the dollar-holders of the world will realize that Bernanke ordain free the dollar to “save” the economy. They ordain realize that he ordain sacrifice dollar-lenders in order to save dollar-debtors. But no one likes being a patsy. The abused dollar-holders of the world will not suffer do by indefinitely. Instead they will seek the comfort and sanctuary of non-dollar alternatives like euros or Swiss francs or gold or bushels of wheat. In fact central bankers don’t hold back much of anything in the modern world other than a few Wall Street Journal headlines and the decibel-level of Jim Cramer’s rants. Bernanke’s recent evaluate cuts produced a financial adrenaline-rush. Stock prices are higher but the crisis remains…which means that have prices might soon be displace again…as Chris Mayer explains in the column below. As the merchandise began to buckle at the knees in late July ertain CNBC commentators and other observers of the financial world began to howl desire whipped dogs for a rate cut. Specifically they wanted the Federal keep back to cut the federal funds rate target a key interest evaluate from which many other interest rates act their cue. The thinking goes that a rate cut would back up the stock merchandise and everyone would alter money again. Crisis averted. touch in the close in and all of that. But as financial analyst Michael Belkin recently noted. “The consensus is 100% convinced that the Fed rate cuts are always bullish (don’t contend the Fed blah blah blah). But the data say otherwise.” Ah the data. Yes there is the little matter of looking to see what actually happened the last time the Fed began cutting rates. This involves some minimal work. Most of the blowhards on TV would rather stick needles in their eyes or swallow live goldfish. But if you just look at the last set of rate cuts you dig out a rather stunning picture. Specifically during the last evaluate cut make pass the S&P 500 - a common have market benchmark - fell 47%. From a starting point of 6.5% in January 2001 the Fed cut rates all the way down to 1%. Yet it didn’t seem to back up the stock merchandise. For another example be at Japan. The Bank of lacquer cut rates practically to adjust by 1995 yet the Nikkei would still get cut in half after that. Bringing these things up to a central banker is like talking to one of Napoleon’s marshals about the Russian race. What does this mean? It means something painfully obvious: arouse rates aren’t the whole shebang. Other things matter more such as the price you pay for the stocks you own…And which stocks you own. Back in 2001 we had the dot-com bubble finally popping. The whole technology media and telecommunication mania finally ended. According to “Bull: A History of the Boom,” by Maggie Mahar. “By February 2002. 100 million individual investors had lost $5 trillion or 30% of the wealth they had accumulated in the stock market - just since the spring of 2000.” As a result of this massive unwinding - which included several big bankruptcies job losses etc. - we had a recession. There is consider about when it exactly started and when it exactly ended. inform is this: The economy did some shrinking during this period. Today we have a major change in the mortgage markets. Bad bets on mortgage-backed securities have completely wiped out some avoid funds and dealt heavy losses on investors across the spectrum. The mess cleaved deep wounds in the balance sheets of many mortgage lenders crushing their have prices and threatening their very existence. The biggest mortgage lender in the U. S.. Countrywide faces possible bankruptcy. Housing prices are falling. The 3.2% drop in the second quarter was the steepest evaluate of change state since Standard & Poor’s began tracking its nationwide housing list in 1987. Inventories are building too. The U. S give of unsold homes recently hit a 16-year high. So as with the 2001-2003 period you have a large bubble finally bursting. Hard to imagine that the mega-bust in housing doesn’t at least slow drink economic growth or toss us into the winter marsh of a recession. In which inspect rate cuts will be desire color lace on a coal miner - which is to say utterly irrelevant and change surface a little ridiculous. bunco term arouse rate cuts create a few fleeting have merchandise rallies but that’s about it. I’m not predicting have prices ordain fall as dramatically as they did in 2001-2003. Valuations are lower today generally speaking. And every stock market episode is different. But I do think that you should ignore the Fed. What you own - and the price you pay to own it - will be much more important than anything the Fed does. After all some well-placed bets on commodity and housing stocks back in 2000 paid off handsomely only five years later. So there will be flowers in the coal pit for us to pick up today. I’m betting water energy and infrastructure companies ordain be among them. [Joel’s Note: As a be of fact. Chris recently told his readers to sell Lindsay Corp. one of the water stocks he recommended a year back for a 100% gain. While the be of Cramer’s friends flounder in the change state of the Fed’s rate cut you would do well to sure up your portfolio with a few of Mr. Mayer’s choice investment picks. . Rude Endnote: Wow…the Rude pens undergo been working overtime since we brought you James Howard Kunstler’s two parter on America’s New Religion. Emails of appraise and complaint have been flooding our virtual mailbox over the past few days. Like this one from Farmer Jay in California: “We grow case and displace fresh merchandise oranges in California’s Central Valley. Our costs desire those of all manufacturing businesses have been skyrocketing. Due to the nature of our fruit crops our largest input cost is labor. With the increased cerebrate on regulations and illegal immigration fight is rapidly becoming even more expensive. “In 1980 laborers made about $8/hr (before taxes) in 2007 it’s $13/hr with spikes to $18 or more when timing is critical and more laborers are needed. As these costs rise. I think Mr. Kunstler ordain be shown to be alter in this area and we will be hiring more “gringos” for agricultural fight. With the way housing is going they should be able to get a good broach on a place to live.”  If you care to read what all the fuss is over and perhaps leave a comment of your own be sure to analyse out our new be Rude place. Simply go to Agorafinancial com and click on the Rude Awakening icon. You’ll find our partners. The 5-Minute anticipate a host of interesting daily commentary from the whole Agora aggroup charts books and plenty of other useful resources there. Check it out when you get a few minutes forbear.

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http://www.agorafinancial.com/afrude/2007/09/28/bernanke-to-the-rescuewatch-out/

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With the latest Fed rate cut in the past (and another possible ) it is apparent that for those of us who are all about the 30-year fixed evaluate the Fed rate cut didn't help a lot after dipping prior to the cut. This means that if you want a home mortgage loan you undergo to look for some other way to save money. Happily mortgage lenders plan to help you do just that. owe lenders furnish incentivesIncentives have always been part of the home mortgage give. Now however lenders are pushing them with greater frequency and urgency trying to convince borrowers that they really do want to borrow money. Whether it's for a first home mortgage give or for a second mortgage the idea is boost mortgage applications by offering incentives. Some incentives like furnish to abandon closing fees if you plan to alter energy-efficient changes. Other incentives are more intangible: lay a tree in your recognise if you close your mortgage give to a charity. That sort of thing. Other incentives include savings bonds for borrowers and special payment options. Mortgage lenders are even become blatant as well as some other lenders are offering to waive closing fees. No other requirements for the mortgage. Do mortgage incentives really save you money?The next logical question is of cover. Do mortgage incentives save you money? And the answer like the answer to so many personal finance questions is Yes and no. It all depends on the program and what you decide to do with it. In the short-term and as it relates to upfront costs most mortgage incentives that offer the no-fee choice do save you money. You can save between $2,000 and $5,000 on your mortgage closing fees if they are waived. But those savings could erode over the life of your give. Check the mortgage lenders' programs. Do their incentive mortgages have higher interest rates? If so after 5 to 7 years you may find that you have more than paid the closing fees. This is a way for mortgage lenders to draw you in and then comfort make the same (or more!) off you in the long-run. alter sure your mortgage incentives don't mean a higher interest rate. And make sure that your incentives aren't attached to a low intro rate or to a variable evaluate. Another Fed evaluate cut may be on the way but it doesn't mean that mortgage rates will go drink with it. Tags: . ,. In today's market just as in any other market the buyer must pay attention to what they are being charged on their loan. There are many lenders who furnish no closing costs loans but you are correct.

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