From the desk of:
Rich Storey
Mortgage Advisor
615.260.8028
As Wall Street soared nearly 900 points on Tuesday, the White House began to push both banks and financial institutions to quit hoarding billions of dollars flowing into their vaults and start making more loans.
Hoping to thaw the credit freeze that has chilled the economy, the Bush administration sent banks an unmistakeable message to put aside fears and open loan windows. The White House is attempting to jump start a stalled economic system by making more money available to both cash-starved businesses and consumers who have pulled back on spending.
White House press secretary, Dana Perino, was quoted as saying, "What we're trying to do is get banks to do what they're supposed to do, which is support the system that we have in American. And banks exist to lend money."
As the election creeps ever-closer, the American economy is caught in a whirl-wind of anxiousness and uncertainty.
Perino went on to say, "The way banks make money is by lending. And so they have every incentive to move forward and start using money this money."
Wednesday, October 29, 2008
Thursday, October 23, 2008
Greenspan Speaks on Credit Crisis
From the desk of:
Rich Storey
Mortgage Advisor
615.260.8028
Taken from www.CNNMoney.com
Greenspan: It's a 'credit tsunami'
Former Fed chairman says crisis will pass, but congressmen say he dodged responsibility and didn't foresee crisis.
NEW YORK (CNNMoney.com) -- Former Federal Reserve Chairman Alan Greenspan told a House committee Thursday that the nation will emerge from the current credit crisis with a "far sounder financial system."
"We are in the midst of a once-in-a century credit tsunami," Greenspan told the House Oversight and Reform Committee.But he said that less-risky decisions by investors will help pull the markets out of their slump. "Investors, chastened, will be exceptionally cautious," he said.
Committee members weren't buying Greenspan's rosy forecast, lambasting him and two other officials - SEC chairman Christopher Cox and former Treasury Secretary John Snow - for failing to prevent the credit crisis and for refusing to take responsibility for it.In his opening statement, Rep. Henry Waxman, D-Calif., committee chairman, said the current economic crisis could have been prevented "if regulators had paid more attention and intervened with responsible legislation. The list of regulatory mistakes and misjudgments is long and the cost to taxpayers and the economy is staggering."Waxman put Greenspan on the spot, asking if he made any mistakes during his tenure as Federal Reserve chairman that may have contributed to the mortgage crisis.
Greenspan said he made a mistake in presuming that lenders themselves were more capable than regulators of protecting their finances. He said he was "shocked" when that system "broke down."
"I still do not understand exactly how it happened," said Greenspan.
Regulatory proposals
Greenspan offered some proposals for regulatory changes in his testimony, namely "to require that all securitizers retain a meaningful part of the securities they issue."
In other words, he wants to require lenders to own or back part of the loans they issue, rather than pass off the risk to someone else.
Greenspan also stated his support for the $700 billion Wall Street bailout approved by Congress, which allows the U.S. government to buy bad mortgage investments from finance firms.
The bailout is intended to thaw the credit freeze by freeing up firms to offer new loans. "Indeed, the impact is already being felt," said Greenspan. "Yield spreads are narrowing."
But Greenspan also said that whatever regulatory changes are made to respond to the crisis, "they will pale in comparison to the change already evident in today's markets."
Because of their hard-won experience, markets "will be far more restrained than would any currently contemplated new regulatory regime," he said.
Throughout the hearing, committee members harangued Greenspan, Cox and Snow for dodging blame, and for claiming that they didn't know how bad it was until it was too late.
Rep. Elijah Cummings, D-Md., lashed into Cox for waiting until September before urging Congress to regulate credit default swaps, a complex financial instrument that many people blame for spurring the crisis.
But Cox replied that Congress shares the blame. "We don't have authority to regulate credit default swaps because Congress hasn't given us this authority," he said.
Rich Storey
Mortgage Advisor
615.260.8028
Taken from www.CNNMoney.com
Greenspan: It's a 'credit tsunami'
Former Fed chairman says crisis will pass, but congressmen say he dodged responsibility and didn't foresee crisis.
NEW YORK (CNNMoney.com) -- Former Federal Reserve Chairman Alan Greenspan told a House committee Thursday that the nation will emerge from the current credit crisis with a "far sounder financial system."
"We are in the midst of a once-in-a century credit tsunami," Greenspan told the House Oversight and Reform Committee.But he said that less-risky decisions by investors will help pull the markets out of their slump. "Investors, chastened, will be exceptionally cautious," he said.
Committee members weren't buying Greenspan's rosy forecast, lambasting him and two other officials - SEC chairman Christopher Cox and former Treasury Secretary John Snow - for failing to prevent the credit crisis and for refusing to take responsibility for it.In his opening statement, Rep. Henry Waxman, D-Calif., committee chairman, said the current economic crisis could have been prevented "if regulators had paid more attention and intervened with responsible legislation. The list of regulatory mistakes and misjudgments is long and the cost to taxpayers and the economy is staggering."Waxman put Greenspan on the spot, asking if he made any mistakes during his tenure as Federal Reserve chairman that may have contributed to the mortgage crisis.
Greenspan said he made a mistake in presuming that lenders themselves were more capable than regulators of protecting their finances. He said he was "shocked" when that system "broke down."
"I still do not understand exactly how it happened," said Greenspan.
Regulatory proposals
Greenspan offered some proposals for regulatory changes in his testimony, namely "to require that all securitizers retain a meaningful part of the securities they issue."
In other words, he wants to require lenders to own or back part of the loans they issue, rather than pass off the risk to someone else.
Greenspan also stated his support for the $700 billion Wall Street bailout approved by Congress, which allows the U.S. government to buy bad mortgage investments from finance firms.
The bailout is intended to thaw the credit freeze by freeing up firms to offer new loans. "Indeed, the impact is already being felt," said Greenspan. "Yield spreads are narrowing."
But Greenspan also said that whatever regulatory changes are made to respond to the crisis, "they will pale in comparison to the change already evident in today's markets."
Because of their hard-won experience, markets "will be far more restrained than would any currently contemplated new regulatory regime," he said.
Throughout the hearing, committee members harangued Greenspan, Cox and Snow for dodging blame, and for claiming that they didn't know how bad it was until it was too late.
Rep. Elijah Cummings, D-Md., lashed into Cox for waiting until September before urging Congress to regulate credit default swaps, a complex financial instrument that many people blame for spurring the crisis.
But Cox replied that Congress shares the blame. "We don't have authority to regulate credit default swaps because Congress hasn't given us this authority," he said.
Wednesday, October 22, 2008
TAKE ADVANTAGE OF TAX CREDIT
From the desk of:
Rich Storey
615.260.8028
RichStorey@theuptowngroup.com
Attn: First Time Home Buyers
If you are reading this blog and know someone who is currently considering a home purchase and is considered a FIRST TIME HOME BUYER....please forward this info.
This offer EXPIRES July 1, 2009.
A First Time Home Buyer is considered to be anyone who has not owned a home in the previous 3 years and will qualify for the incentive.
There has been a tax incentive rolled out by the federal government that first time home buyers need to be aware of. Please visit http://www.federalhousingtaxcredit.com/ for full details.
The tax credit is among several provisions included in landmark housing legislation enacted into law last month that will help get housing and the economy back on their feet.
The Web site contains useful information on how the tax credit works, including eligibility requirements. To date, the site has attracted 116,000 unique visitors, or about 10,000 per day. It includes details and questions and answers on how home buyers can use the credit and is divided into four sections:
- Tax Credit at a Glance. This provides a brief overview on how the credit works.
- Frequently Asked Questions. A clear to read question and answer format contains basic information about the tax credit, including the definition of a first-time home buyer, what type of homes qualify for the tax credit, what are the income limits to qualify, payback provisions and more.
- The Law’s Other Provisions. In addition to the tax credit, this section summarizes a number of provisions in the Housing and Economic Recovery Act of 2008 that will help prevent foreclosures, reinvigorate the housing market and strengthen the nation’s economy.
- Home Buyer Resources. Provides online resources to make the buying process smoother.
Don't delay........
Rich Storey
615.260.8028
RichStorey@theuptowngroup.com
Attn: First Time Home Buyers
If you are reading this blog and know someone who is currently considering a home purchase and is considered a FIRST TIME HOME BUYER....please forward this info.
This offer EXPIRES July 1, 2009.
A First Time Home Buyer is considered to be anyone who has not owned a home in the previous 3 years and will qualify for the incentive.
There has been a tax incentive rolled out by the federal government that first time home buyers need to be aware of. Please visit http://www.federalhousingtaxcredit.com/ for full details.
The tax credit is among several provisions included in landmark housing legislation enacted into law last month that will help get housing and the economy back on their feet.
The Web site contains useful information on how the tax credit works, including eligibility requirements. To date, the site has attracted 116,000 unique visitors, or about 10,000 per day. It includes details and questions and answers on how home buyers can use the credit and is divided into four sections:
- Tax Credit at a Glance. This provides a brief overview on how the credit works.
- Frequently Asked Questions. A clear to read question and answer format contains basic information about the tax credit, including the definition of a first-time home buyer, what type of homes qualify for the tax credit, what are the income limits to qualify, payback provisions and more.
- The Law’s Other Provisions. In addition to the tax credit, this section summarizes a number of provisions in the Housing and Economic Recovery Act of 2008 that will help prevent foreclosures, reinvigorate the housing market and strengthen the nation’s economy.
- Home Buyer Resources. Provides online resources to make the buying process smoother.
Don't delay........
Tuesday, October 21, 2008
New U. S. mortgage chiefs plead for time
As the U.S. Mortgage Bankers Association is currently meeting in San Francisco, reports on the internet are pointing to an economy that is currently "stalled", but also one that will be picking up steam soon.
James Lockart, Director of the U. S. Federal Housing Finance Agency, sits on the oversight committee for US$700-billion Troubled Asset Recovery Plan and is currently in attendance at the Mortgage Bankers conference in San Francisco. He was quoted yesterday as saying, "I think it's uncertain how long it's going to take. I have no doubt it will [work], but I think it's going to take some time," he went on to say, regarding the Asset Recovery Plan, ""My belief -- and I've gone to several meetings now with the board -- is that it really will have a dramatic impact on unfreezing the credit markets" .
Hopefully, the combination of $700 billion & relaxed underwriting guidelines will help the American public and it's current mindset regarding home mortgage financing.
No doubt, we are in crazy times. As the Bush administration exits and a new adminstration takes over, I feel like that will also help with our disgruntled demeanor regarding the current status of our economy.
Bottomline......"gray skies are gonna clear up, put on a happy face."
James Lockart, Director of the U. S. Federal Housing Finance Agency, sits on the oversight committee for US$700-billion Troubled Asset Recovery Plan and is currently in attendance at the Mortgage Bankers conference in San Francisco. He was quoted yesterday as saying, "I think it's uncertain how long it's going to take. I have no doubt it will [work], but I think it's going to take some time," he went on to say, regarding the Asset Recovery Plan, ""My belief -- and I've gone to several meetings now with the board -- is that it really will have a dramatic impact on unfreezing the credit markets" .
Hopefully, the combination of $700 billion & relaxed underwriting guidelines will help the American public and it's current mindset regarding home mortgage financing.
No doubt, we are in crazy times. As the Bush administration exits and a new adminstration takes over, I feel like that will also help with our disgruntled demeanor regarding the current status of our economy.
Bottomline......"gray skies are gonna clear up, put on a happy face."
Monday, October 20, 2008
The Time Is NOW!!!!!!
Wow, what a great time to be a real estate investor. You can't turn on the TV these days without hearing news about how Wall Street is on the decline. As your stock portfolio continues to take a beating.....now is the time to consider real estate.
Memphis TN presents a unique opportunity for real estate investors. There is a steady supply of nice properties that can be acquired for $.50 on the dollar. Also, there is an abundance of renters in the Memphis area. These two things go very well in the real estate investing world.
Give us a call at 615.260.8028 to find out how to get started.
Time is wasting....call now!!!
Memphis TN presents a unique opportunity for real estate investors. There is a steady supply of nice properties that can be acquired for $.50 on the dollar. Also, there is an abundance of renters in the Memphis area. These two things go very well in the real estate investing world.
Give us a call at 615.260.8028 to find out how to get started.
Time is wasting....call now!!!
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