How the Fed Cut Affects the Prime Rate

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I think we have a lot of regulations and guidance but no one every cared!!
All the rules in the world cannot keep the fox out of the henhouse. This is simply a problem that the 'fox' (ie all the greedy people on wall street) did everything in their power to make money even if it meant pushing teaser loans to the unwary.
More rules will not matter if there is no stiff penalty to enforce them; the people want a regulator and more rules but we shall see if anyone cares in the end....

lee of CA 1:32AM October 10, 2008

thank you small business owner, you said it right.

pedro of FL 7:40PM October 08, 2008

What the hell are you Smoking? Gee, will a 2000 sq foot home with an Ocean View be priced the same as a 3000 sq foot home with a Wal-Mart view? Let's see, 2.5 bath, sorry, the regulators say you can't raise your asking price to exceed the price for a 1.5 bath.
OF course, we will reduce un-employment once we add 20,000 new Regulators to monitor house prices. Oh wait, California is already in debt $7,000,000,000 so we can't afford to hire anyone.
You must be drinking some of the Peace and Freedom party Kool-Aid with some of the Pelosi sweetener added.
Suggestions a might make sense -- too a point. Gee -- you want to subsidize the lower rate? Isn't that how we got into this mess in the first place, subsidizing mortgages for people who had NO business getting into a mortgage (and don't give me the "predatory" lenders spiel -- if you aren't smart enough to understand the down side of a mortgage you shounldn't be buying a home.)
Suggestion d -- Clearly there are abuses. But, don't stop with CEO's. There are plenty of other occupations who financially rape us. (Trial Lawyers, Union Presidents, Teachers Union, and Politicians to name a few)
p.s.... I am a small business owner.

GH of CA 4:56PM October 08, 2008

I think as a part of regulation some of the things that can be done are:
a) To meet an American dream if the home loan you take is for the primary home, the interest rate should be lower as much it can be. But if some one is trying for investment property that can be bumped up a bit.
b) Regulate the price of the housing market by state/region/locality. These days following the demand supply concept all house prices are hyped and if you look at those homes they are all old and crappy but for paying premium price.
c) This will also help bank to lend less money to the home buyers and also reduce the lending risk. (i.e If the home prices are regulated some one can buy a home for 200K instead of its hyped price of 500K, which means bank will need to lend only less than 200K for the loan)
d)Need to cut down the premium you pay for all these CEO's, RECETNLY WAMU CEO made almost 20Million for just working 17 days in that company. There is no way you can compare that kind of compensation for a common man who is working hard every day to live. What ever he could have done in 17 days, I have a serious doubt if that is work 20M.

Bijilal Poikayil of CA 2:49PM October 08, 2008

The rate cuts may hasten inflation since the markets still have no regulatory changes. This blank check policy of simply dumping money into the economy will never correct anything without new regulatory policies. The G30 are working upon new policies however it takes time and we should NEVER pump more money into anything till we have addressed the root causes of the problem. This is merely an extension of the leadership by shotgun approach where we haven't a plan nor goals, just a checkbook and an ink pen. The world knows America is a loose cannon at present, evident by the volatatile markets and will remain so until we finally have a cohesive plan. Until then, save your Confederate money boys cuz the South's Gonna Rise Again!!!

Ray Fisher of NM 1:48PM October 08, 2008