my worry isn’t the mortgage problem per se, it’s the cascade effect in the short and mid term markets. banks aren’t even lending to each other right now and THAT is very bad.
It sure is and I think folks are extremely short sighted to trash the government’s attempt to bring liquidity to the markets. The thing was agreed to on Friday, and folks are wondering why it hasn’t fixed things by Monday.
What’s sad is that I see a sort of glee regarding the fact the $700 billion hasn’t fixed things yet. Being able to say, “See I told you so!” is more important than the markets working as they should.
Good grief!
If we had taken that measure a week earlier, it may have helped a little by now. Instead we played chicken for a week until the liquidity was frozen solid. Well, here we are. This is what folks said wasn’t about to happen.
If this doesn’t turn around quickly, folks are going to find out just how screwed things can get. We’ll see how happy they are to ‘bite the bullet’, something they demanded to be able to do.