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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (85893)	8/17/2007 12:24:52 PM
From: Jim McMannis	Respond to of 306849

By lowering the discount rate, the rate member banks can get money from the FED, this gives member banks the liquidity they need to pay off depositors should their be a run on the banks. While it does provide easier money for the banks it really doesn't help the sub-prime, junk mortgage market in that those standards aren't likely to be loosened any time soon. The whole mortgage system is running scared. Home prices are just going to have to adjust to 20% down, verified income and higher rates. So in the long run we'll see what housing is worth based on the old standards.