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Ali Velshi
CNN Chief Business Correspondent
While everyone is carrying on about bonuses, the Fed is actually doing three things:
"Injecting" $300 BILLION into the system by buying that amount of bonds back from the governments creditors. That puts $300 B into the world's economic system for use, possibly making some of that money available for large companies that continue to have trouble borrowing.
Buying up another $750 Billion in mortgages from Fannie/Freddie (bringing the total to $1.2 trillion). That gives F/F that much more money to buy mortgages from banks, meaning bank lending standards can loosen up a smidge. People looking to buy a house might now get the mortgage, at a good rate, that they couldn't get even a week ago. That means more people can buy homes, and home sales and value can increase.
And a third thing that is a little more obscure, but basically adds money to the system that offers up consumer credit – car and student loans.
Three REAL things that will have a direct impact on credit for real people while we continue to obsess about bonuses that make up less than 1% of the mountain of money that we've given AIG.
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Filed under: 360° Radar • Ali Velshi • Economy • Finance |
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Ali
Roughly $1.9 trillion of mortgage loans outstanding as of Dec. 31 had been packaged into securities that don't carry government backing, according to Inside Mortgage Finance. Thus far, servicers have been more reluctant to modify those loans than mortgages they own.
My loan is owned by Deutsche bank ...It is not serviced by Fannie Mae nor Freddie Mac. Fortunately, when I purchased my home, I had sold my previous property ....I was in an equity position so I was able to pay off my second tust. I am current on my mortgage but the value of my property is well below 90% and my income has gone down by over 40%
Am I out of luck.... should I walk? or is something going to be done about it ?
Whats your input .....Thank You
Hi Ali Velshi you said last night that Chrysler doesnt make quality vehicles. That is so misinformed. There quality has steadily improved in the last 10 years and now they are equal to any compition and have the longest warranty in industry to prove it. I just ordered new Dodge truck witch car and driver rated as "best truck". and the new dodge challenger continues to get great reviews. I think that all the American auto companys make great vehicles and none shoud be singled out to make false points in tv segment. Ali you should drice a nice chrysler 300 and judge for youreself. I have always been happy with my chyrsler products and am proud to support american workers . Thanks for youre time . bob
Progress, ("smidge" being the operative word above) but I also hear it is being "stonewalled" by the people with authority to actually give loan approvals. The "high level" stuff may be happening, but down here where it's supposed to work, we are still in stasis.
The money for the peasantry seems to stop at the loan approver desk.
My question for the NY Federal Reserves past president ,[(US Treasury Secretary/09)] Mr. Geithner,and current Federal Reserve Chairman Ben Bernanke would be President Obama's Administration sandbagging (usurpping) Mr. Geithner (past experience as a subordinate) to Mr. Bernanke ,thus letting the Fed's Chairman take complete control of the entire show? It seems strange that the Obama Administrations vetting procedures have handcuffed Treasury Secretary Mr. Geithner to a one man show. Just dosen't square,..? Thanks
Then why doesn't the FEDS buy up everything instead of injecting money into financial institutions that will eventually be given the opportunity to do the same thing over again? What you are saying in your article--doesn't appear to be having a cause and effect on the economy--great things--but you can't take advantage of great things when you have no JOB!