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

To: Smiling Bob who wrote (109018)	3/11/2008 10:31:23 AM
From: Think4Yourself	Read Replies (3) \| Respond to of 306849

Must confessed I am surprised by my sudden mentality change, but think about what the fed just did. I mean REALLY think about it. The key problem here is that the banks won't lend because of liquidity problems. The markets want the fed to lower interest rates. The problem is NOT interest rate related and there ar severe repercussions to lowering rates further. So how can you increase liquidity, especially for mortgage securities? It seems to me that the fed action was pure genius. They actually addressed the problem with a highly targeted solution that doesn't have all the negative side effects. It might not work but it was pure genius. Someone in the fed is thinking. I am normally willing to bet against the fed, but not THIS fed. This is the second unorthodox action they have taken in the last six months.