Happy Friday! I am not posting Rates today but They are STILL BETTER than last week Friday by about .500 rebate.
For Something funny I came across scroll down. Maybe you'll get a tickle.
I am not going to go on about Politics today but since I wrote a little headliner to grab your attention I figured I would share what George Bush thinks about Housing...: It stinks, is stinking and is going to hinder us in the near term. He actually said: "We need a Shot in the ARM to stop other areas of the economy, like Housing, from effecting us in the Long Term.
Uhh...YA THINK? I know I am not spending more money this year for a number of reason's (mostly because my income is, shall we say, lower than in the past?). Not to mention all those folks that are having trouble covering their adjusting payment right now.
In any case the President believes that Congress and the Senate should vote for a bill that will provide Tax Cuts for the Near term both for the Consumer and for Big and Small businesses.
For the Consumer:
    So they can spend the money as they see fit, on bills, at the pump, and anywhere else (they're most likely hoping at the mall).
For the Small/Medium/Behemoth businesses:
    So they can make Major Investments in Infrastructure and growth strategies to help create new jobs in the immediate Quarter(s).
The total would be equal to 1% of our GDP for the year or $145 Billion Dollars.
Also for HOUSING:
    Count one more in our Corner: the President urged both the House and Senate to get together and make a decision on GSE/FHA Reform legislation QUICKLY. That's great news for us.
This will be all over your news today and for the next two weeks so I'll stop there.
You know what's funny about all this? Inflation is at 2-2.5%, when I took Economics in College I was taught that so long as you keep that  number under 4, you're in GREAT shape, not good, average BUT GREAT!
Un-employment is at 5% I was taught that this is Full-Employment.
Many of you will remember these same principles.
We know the Fed is going to cut the Fed-Funds rate by .500% at the end of the month. Thereby lowering the cost of credit (mostly to big lending institutions, but also on HEL's and Credit Cards-those units effected by Prime). This will be nice but long term it won't induce additional spending. I am betting that anyone that gets and extra $500-$1000 today will likely spend it on the Credit Card/Utility Bill or Gas Station bills they have going so the net effect of this will likely be close to Zero (paying for past issues doesn't make for forward improvements).
The best way to use any Fiscal Stimulus Package in this environment: Save it. Literally. Save the money and put it into Stocks your 401K, IRA whatever you've got. Stocks always rise when it costs less to finance the cost of doing business (borrowering from the bank, getting government incentives for hiring/infrasture) goes down.