Well, few are actually convinced this plan will even pull us out. Personally, I think this is just the prologue to the big event. The Obama team will peer into the banks books under the "stress test" mechanism to determine which banks could survive with help and which ones should be let go without tax payer money.
This is the psychological set up that will allow the Govt to declare the problem is worse than thought. Im sure we will see a replay of that great film Casablanca, where Claude Rains shuts down Ricks cafe. Im shocked, shocked to find that gambling is going on in here.....
We have spent trillions to prop up the financial system and still its a black hole. I think everybody knows that the banks are insolvent. My guess is that we will find trillions more in bad debt or debt that cannot be evaluated. Once this is out and the damage revealed, the rest of the plan to save the world will be unveiled to a public that is willing to go the distance....this is gonna cost
30-year fixed-rate mortgage: Averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.
The 15-year fixed-rate mortgage: Averaged 4.81 per cent with an average 0.7 point, down from last week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.25 percent.
Five-year Treasury-indexed ARMs: Averaged 5.23 percent this week, with an average 0.6 point, down from last week when it averaged 5.26 percent. A year ago, the 5-year ARM averaged 5.19 percent.
One-year Treasury-indexed ARMs: Averaged 4.94 percent this week with an average 0.5 point, up from last week when it averaged 4.92 percent. At this time last year, the 1-year ARM averaged 5.00 percent.
From the Freddie Mac Site
Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance, said Frank Nothaft, Freddie Mac vice president and chief economist. This would translate into a monthly payment savings of around $188 on a $200,000 mortgage.
The Bureau of Economic Analysis estimated that the weighted average mortgage rate of loans outstanding was about 6.2 percent in the fourth quarter of 2008. As a result, the share of refinancing among the total number of conventional mortgage applications has exceeded 50 percent for the past 11 weeks and averaged 80 percent over this period, according to the Mortgage Bankers Association
30-year fixed-rate mortgage: Averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.
The 15-year fixed-rate mortgage: Averaged 4.81 percent with an average 0.7 point, down from last week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.25 percent. Five-year Treasury-indexed ARMs: Averaged 5.23 percent this week, with an average 0.6 point, down from last week when it averaged 5.26 percent. A year ago, the 5-year ARM averaged 5.19 percent. One-year Treasury-indexed ARMs: Averaged 4.94 percent this week with an average 0.5 point, up from last week when it averaged 4.92 percent. At this time last year, the 1-year ARM averaged 5.00 percent.
From the Freddie Mac Site
Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance,said Frank Nothaft, Freddie Mac vice president and chief economist. This would translate into a monthly payment savings of around $188 on a $200,000 mortgage.
The Bureau of Economic Analysis estimated that the weighted average mortgage rate of loans outstanding was about 6.2 percent in the fourth quarter of 2008. As a result, the share of refinancing among the total number of conventional mortgage applications has exceeded 50 percent for the past 11 weeks and averaged 80 percent over this period, according to the Mortgage Bankers Association.
The first TARP distribution of more than 350 billion dollars was used to provide bonus's and for mergers and acquisitions. That and the outrage over 20 billion in bonus money handed out to Merill Lynch execs seems to have finally gotten through to the people who have broken just about everything.
via cbsmarketwatch.com: Citigroup Inc. unveiled plans for using $36.5 billion of the $45 billion it received in government investment recently, saying the lion's share will go to residential mortgage lending.
In addition to the mortgage lending, Citi said it would use $2.50 billion for personal and business loans, $1 billion for student loans, $5.8 billion for credit card lending and $1.5 billion for corporate loans
We can demand these institutions use our money properly or face serious consequences. Whats shameful is that these are not criminal events and so people like this cannot be prosecuted.
