Smart Borrower Blog

Archive for October, 2008

Misery in The Financial Sector

Today, the government created the Office of Financial Stability.   Tonight, the Dow closed down losing a decade of growth.   Markets overseas fared little better.   Trading was stopped in Russia and other countries because of the current blitz.   Losses in India were horrific.   Indonesia took a huge beating, as did exchanges in Asia. We are seeing the fallout from the mortgage market having its lasting effect on all things financial.   Consumer confidence is at an all time low.   I think it is time that the government realizes it for what it is - a... more »

“Rescue Plan” Passes The House

One has to wonder if the so-called “rescue plan” is going to be Bush’s last shot for a plausible legacy.   As the news reported tonight, the bill has gone through the House and Senate and is now on Bush’s desk to be signed into law.   No matter how they word this bill, it is still a bailout.   Call it rescue plan, intervention, paint it whatever color you wish, but it is still a bailout. So where will this now lead us?   Instant relief in the credit markets?   Stability on Wall Street?   How about stability... more »

Mortgage Demand Tanks as Markets Await Bailout

The volume of home loan applications dropped significantly in the past week, even as mortgage interest rates remained relatively low, according to figures released Wednesday from the Mortgage Bankers Association (MBA). The MBA’s market composite index, an indicator of U.S. loan application volume, fell a seasonally adjusted 23.0 percent to 455.4 during the week ended Sept. 26, from 591.4 the previous week. The current reading is also down 28.4 percent on a year-over-year basis. Home purchase loan requests fell by 10.9 percent, but refinance mortgage applications sank by 34.7 percent, an indication of the slowing economy and a painful credit... more »