300 billion that is billion folks. I am sure that estimate is way low more like 1 trillion.
That is the bailout estimates bantering around for the housing bust. Now the media is giving you a good story about the particulars of the plan so I wont need to explain that, but the media is only telling you what 400,000 hopeful over extended homeowners want to hear.
Econ 101...Inflation: too much money chasing too few goods.
If you cannot see where this bailout is headed, then we really need to get you up to speed.
If there are any questions in any one's minds right now where inflation is headed, read the news...
So we know the gov. is bent on throwing enough of my money after the problem to solve it, leaving me no alternative but to be UN American and short the banks after this nice bounce and stay long natural resources. After all, what maintains or even goes up in value in inflationary times?
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And the rates for 30 year fixed loans are high...
What exactly do they want to save?
"Freddie Mac: 30-yr fixed-rate mortgage up on inflation woes
By Sue Chang
Last update: 10:12 a.m. EDT July 24, 2008
SAN FRANCISCO (MarketWatch) -- Freddie Mac (FRE: said Thursday the 30-year fixed-rate mortgage average was up from last week to 6.63% with an average 0.6 point for the week ending July 24. Last week, the average was 6.26%, and the year-ago average was 6.69%. "Market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year all combined to push mortgage rates higher this week. Some of the key drivers to these concerns were consumer prices jumping 1.1% (annualized) in June - the largest increase since September 2005 on a year-over-year basis - coupled with consumer prices growing at a 5% clip (on a year-over-year basis), the strongest since February 1991," said Frank Nothaft, Freddie Mac's chief economist, said in a statement."
www.marketwatch.com
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