Key lesson from the Great Depression: Don't wait till it's too late 
Commentary: Think fast -- those old fixes won't work
By Lou Barnes, Friday, September 23, 2011.
Financial markets seemed to react badly to the Federal Reserve's announcement of two new but minor operations, net-neutral as to new money. Some say the Fed's grim statement of risks did the damage; others claim it was the absence of a big policy move (i.e., more quantitative easing).
There's a lot more to this week than the Fed. The best case for Europe is a nasty recession -- if austerity and unity prevail. If not, they'll have a sharper and deeper affair in a scramble back to local currencies (I am one of very few who see that scramble as quickly beneficial). Also, markets suddenly get the odds in favor of a new U.S. recession.
And, purely a matter of personal opinion, markets are shaken to their souls by the spectacle of the worst-ever peacetime performance by Western democracy.
The 10-year Treasury note dropped to 1.75 percent from 2.07 percent in a week. Mortgage rates at yesterday's low (up 0.125 percent now) translated to:
- If your FICO score is 670 and you have low equity, 4.25 percent.
- If your FICO score is 800 and your loan-to-value ratio is 50 percent, 3.875 percent.
Whatever you are, if you don't have a vanilla job, "you ain't nuthin'."
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