DeeJayH

if there is a recession, which seems probable, it will be for the current quarter and maybe the next. by Than govt 'interference' will have taken affect, mostly in a emotional way, rather than anything that makes a actual difference
the bad news will be out and behind us for the most part
while some lose houses, the drop in prices will make them more attractive to people who can afford to buy a house
the interest rates currently make it a very attractive time to buy
and the falling dollar makes for a great opportunity for foreign investment in Real Estate
one mans pain, is another mans opportunity

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ashurbanipal

Sure. Most of the action was a couple months ago so finding links on MSNBC or CNN or someplace will be difficult, but here's a retrospective summary:

Ben Bernanke Helicopter In Action

And here is a link that provides a summary of other actions:

Banking Mortgage Liquidity Crisis - The Federal Reserve and the 2007 Banking Mortgage Liquidity Crisis

Now, all of these are, theoretically, loans that must eventually be paid back. But the terms are murky and Bernanke seems to have indicated he'd have no problem extending any payback deadlines. And, perhaps most importantly, the loan auctions and superfund managing is outside the usual course of action for the Fed.

ashurbanipal

Except, in this case, the people who will be on the opportunity side of that equation will be vastly outnumbered by those on the pain side. I'm hoping to be one of those on the opportunity side, as I've seen this coming for a while.

DeeJayH

this so called crisis only pertains to 1% of the mortgage market
it is not that big a ****ing deal unless you are one of those people
quit buying into the BS of flashy headlines

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ashurbanipal

DeeJayH,

I'm not sure where you come up with that figure. Even if that is somehow correct, it's beside the point. The problem is the dollar value of the losses and the fact it's showing that many of our most trusted institutions have been playing Enron-style games. For starters, see:

A bad market? You ain't seen nothin' - MSN Money

The worst lies ahead for Wall Street - Crain's New York Business.com

Bond insurers | Buddy, could you spare us $15 billion? | Economist.com

What we have here is a vast financial house of cards. As one falls, the others also begin to fall. The dollar values of the shady instruments in question is staggering.

dixon76710

Actually the terms and "payback deadlines" are prcisely defined, Bernanke cannot extend payback deadlines and such auctions are the usual course of action for the Fed.

Gill

We can't officially have a recession for a few more months. The official definition of a recession is 2 consecutive quarters with a lower GDP. We have not had one quarter of lower GDP yet.

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dixon76710

Thats an old definition. Using that definition, we never had the last recession.
U.S. Department of Commerce. Bureau of Economic Analysis

Gill

That's the definition I heard from a leading economists on the radio last night and I confirmed it on Wikipedia.

__________________
There is so much unforced variability in the system which we can’t predict — the chaotic component of the climate system — which is not predictable beyond two weeks, even theoretically.
Gavin Schmidt, NASA GISS

dixon76710

I know, its just not the definition the US government uses.

Gross domestic product 2000, 1st quarter thru 2001, 4th quarter

98.764
100.315
100.200
100.721
100.597
100.906
100.551
100.948

U.S. Department of Commerce. Bureau of Economic Analysis

need to change the dates to 2000-2001