Why does the Fed keep saving the Market? I thought they were supposed to hold off and only come in when there is a real problem. I know what your saying “there is a real problem!”, but it’s a problem created by bank and homeowners negligence. The more they lower rates, the weaker the US dollar will likely become in turn hurting the fixed-income and retirees.

I agree this is good for the market, but I think it’s just another delay for a correction that is inevitable. The sub-prime mortgage mess needs work itself out.

On another side we have Henry Paulson (74th Secretary of the Treasury) who is ready to start bailing out Fannie Mae and Freddie Mac, these two companies can already borrow money at rates lower than any other bank! They screwed up when they started buying mortgage backed securities on the secondary market. For years they had only originated loans with strict guidelines, then in the past few years they moved to the secondary market. So did a company that can already borrow money at rates lower then any other bank need to go into this business? I don’t think so… rant rant rant..

Unfortunately the real losers in this market are going to be the home-owners and small mortgage brokers, not to mention some REALTORS dropping like flies..