more bail outs

[SunTzu]

[SunTzu]

[SeattleMoose]

Only if they reinstate the "zero gravity" subprime and Alt-A liar loans will housing stay afloat...and I dont' see that happening.

I think the rate cuts are aimed at preventing the stock market from also crashing. The fact that it was .5 and not .25 show the seriousness and desperation of the situation....look what is happening in England.

Never mind that in doing so the dollar becomes toast so your stock gains (in dollar value) will at best be a wash....

Modern economies can continue to limp along with inflation/debt, but will collapse if deflation (i.e. reality) is allowed to bring things back to equilibrium. We need deflation, but what the banks/power elite want is eternal inflation. Hence the apparently irrational moves by the pirates (er I mean the FED).

But housing, barring a return to "casino loan" mentality, is toast no matter what. With wages stagnating and the dollar weakening, the cost of food, gas, etc. will erode whatever is left of the average paycheck and make high house prices even more likely...to crash.

[carlislematthew]

[SunTzu]

After "Bendover for wall street" Bernanke's ease yesterday and House's approval of FHA, now we get more bail outs....

[anforowicz]