Does the Rate Cut help our Economy?

Fed Chair Ben Bernanke's rate cut excited the stock market temporarily last week and proved that he would step in and save the day by making money cheaper again. But like a spoiled child that wants his toys, the markets want more. Some economists believe that cutting the Fed rate is not helping the economy but enabling the banks to continue their over exuberance with leveraging. One of the effects of the rate cut is the continuing decline of the dollar globally. Some investors are channeling their assets to foreign markets for a better return. Today, one Canadian dollar is worth one American dollar. Their money is worth almost a third more than two years ago. Enterprising American business owners in the economically challenged upper Midwest are providing free transportation from Canada to the US to help the Canadian men spend their dollars in "gentleman's entertainment" clubs on our side of the border. Bada Bing, anyone? FYI: A bill is out of committee and going to the House of Representatives to modify the 1099 penalty for homeowners that default on their homes. There are several House members that are against the bill. If it does pass the House, it still has to have Senate approval before implementation. 100% Financing is still available for qualified buyers!

Jeff Brock
Mortgage Specialist
The Mortgage Advantage, Inc.
Office: 480-831-1588
Cell: 602-697-1422
Fax: 480-831-5223