What's most interesting here is that not all variable rate mortgages are infinitely variable ~ a significant percentage of them have a "cap" ~ usually 2%, where the change in any one year cannot exceed that amount.
This Fall those rates are DECLINING. I don't think anyone has tallied up the difference this makes but it could be hundreds of billions of dollars.
One of the problems in dealing with this problem is that the "best minds" are working for companies/banks that are under such severe pressure that they may go out of business. That's just the sort of thing to put those "best minds" in a state of panic ~ since they face loss of their retirement, their personal fortunes (to the extent that sort of thing is tied up in the products they manage), and their current income.
I'd suggest we might get better work out of the CPAs and rate analysts at the Postal Service ~ in fact, I know we'd get better work out of them since they'll still have jobs no matter what happens.
Wouldn't be the first time government agencies "borrowed" those guys.
Agree that President Bush needs to pull in the BEST MINDS from companies which are working right, have profits, as well as some small business owners, and 1 or 2 Congressmen per party, and then 1 or 2 economists - but not many of those.
Get people in there who KNOW and UNDERSTAND finances but who also understand BUSINESS - real business.
And, yes, we need a drill for our oil energy policy to start immediately - that would help our economy as much or more than any other action.
The President could call a state of emergency and declare the need for our financial security to require the drilling - since the Dems are NOT going to allow it otherwise.
He could also then issue executive orders that demand this or that measure to stop the financial bleeding....and stop waiting for the corrupt Congress to “act”.
I know that sets a bad precedent but I can guarantee Bubba would not sit around while everything around him was out of control. the Clintons are ALL about CONTROL.
I don’t want their kind of control - but I do want the executive branch to take some control since the legislative branch is fiddling whle Rome burns!