Sunday, December 2, 2007

Very good week

The last 4 days made for a very good week, one of the best in recent years. On Dec 11 the FED will meet to decide about interest rates. The betting is that they will cut the rate by 25 points, if not more. OK. The stock market should continue firm but...

Sub prime loans continue to be a major problem area. The Treasury plans to rescue home loan borrowers by freezing low introductory interest rates before they soar. But this "fix" may not solve fundamental loan problems which are far-reaching. It won't spare many borrowers & bankers from the pain of escalating foreclosures & defaults, borrowers will still be required to make monthly payments. The housing market's ongoing problems can drag on.

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