My New Blog

     Ben Bernacke and co. startled the financial world by dropping 3/4 of a percent for both key rates. It's not that it was unexpected, but shouts volumes as to how bad the perception of the monetary situation really is to do it a week ahead of the monthly meeting. AND you can expect another 1/4 point then too.

     Unilke Vegas, what happens here roils through the world economy since many foreign investors (largely governments) bought the bundled securities.

     What's that mean to you? WELLLLLL, if you have an ARM about to adjust it just won't go as high (and hopefully keep you in the home) and your credit card debt gets a little cheaper. On the flip side, historically 30 year fixed rates generally rise. For those with the cash and credit NOW really is the time to buy.

     Barring a catastrophe, house prices have come down to near bottom, with maybe a few percent left (land and replacement cost can only go so low). For a long term investment the tradeoff of cheaper money outweighs the mental victory of getting a property a few grand less. Of course that's just my opinion.