AgentIndustry News

Fed’s call for stimulus may be too little, too late

Commentary: Credit losses appear to have bankrupted system
Published on Jan 18, 2008

Markets have entered a panicky freefall, the common precursor to at least a temporary rebound. Mortgages reached 5.75 percent, approaching the 5.25 percent all-time lows of '02-'04 from which rates vee'd up every time. Of course rates could go lower, even set a new record, but this is a bird-in-hand moment for refinancing. This adventure began in August with the onset of The Crunch. Through September the markets were aware of a modest crisis, one of those odd, transient, Fed-bank-plumbing things. Only credit market insiders were worried, staggered by the magnitude of potential loss. By October even the Fed had relaxed. Concern renewed and spread on news of defaults and losses in November and consumer weakness in December, but financial market opinion, especially in stocks, was still cool about the whole thing. In the last three weeks, painted plainly on stock market charts, everyone has waked to danger, and the hazard itself has grown. Once confined to mortgages and very s...

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