The Beginning of the Government Mortgage Bailout
Aug 31st, 2007 by Shaun Carter
Today President Bush announced new initiatives aimed to help hundreds of thousands of homeowners with their subprime and high risk mortgages. I think this is the first step to a full scale government bailout for homeowners and the lenders as well. While I don’t agree with the government spending tax dollars to help people who were not financially prepared for home ownership in the firstplace, this move will strengthen the credit markets and help support the economic growth that many believe is waning because of the housing slump.
The quarterly GDP numbers came in very strong for the second quarter of the year and have led to fears that the Fed will not lower rates any time in the near future. Federal Reserve chairman Ben Bernanke will be speaking at 10am today at the central bank’s annual conference.
Stock futures this morning indicate a higher open in the markets today in anticipation of Bernanke’s speech and news coming out of the mortgage lending industry.
Technorati Tags: mortgage, sub prime, bailout, federal reserve, chairman, ben bernanke, shaun carter, president, bush, annual conference, lending, gdp, gross domestic product, interest rates
