{"id":5326,"date":"2008-10-29T13:41:31","date_gmt":"2008-10-29T20:41:31","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5326"},"modified":"2008-10-29T13:41:31","modified_gmt":"2008-10-29T20:41:31","slug":"the-fed-translated-2","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5326\/the-fed-translated-2\/","title":{"rendered":"The Fed Translated…."},"content":{"rendered":"

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.\u00a0\u00a0 That’s the lowest that it’s been since June of 2004.\u00a0 If you recall, former Fed Chairman Greenspan is being blamed, in part, for causing the credit crisis by leaving interest rates too low for too long.\u00a0\u00a0 How low?\u00a0 1%.\u00a0 For how long?\u00a0 From June of 2003 to June of 2004.<\/strong><\/p>\n

The pace of economic activity appears to have slowed markedly,\u00a0 that’s a nice way of saying that the economic reports we’ll see for October are much worse than what they were for September <\/strong>owing importantly to a decline in consumer expenditures the consumer finally is realizing that they can’t do like the government and consistently spend more than they make<\/strong>. Business equipment spending and industrial production have weakened in recent months this isn’t just a housing problem any more, it’s spread much further<\/strong>, and slowing economic activity in many foreign economies our economic problems have spread all over the world<\/strong> is damping the prospects for U.S. exports when other countries are in bad economic straights, we can’t export our way out of a recession <\/strong>. Moreover, the intensification of financial market turmoil is I don’t think it’s a mistake that they use the present tense (is) rather than the past tense (has) – the turmoil is ongoing <\/strong> likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit Yes, I think I know what you’re thinking – aren’t all of these bailout programs supposed to get lenders lending and make credit easy again?\u00a0 More on that later.<\/strong><\/p>\n

In light of the declines in the prices of energy\u00a0 I saw $2.61 a gallon for gas this morning – but very few people are talking about why they have come down – because of lower demand due to slumping economic activity <\/strong>and other commodities and the weaker prospects for economic activity there’s a brilliant statement – weaker prospects?\u00a0 Gee, I think my high school junior could see that! <\/strong> the Committee expects inflation Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent.\u00a0\u00a0 That’s the lowest that it’s been since June of 2004.\u00a0 If you recall, former Fed Chairman Greenspan is being blamed, in part, for causing the credit crisis by leaving interest rates too low […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-5326","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5378,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5378\/mortgage-market-week-in-review-14\/","url_meta":{"origin":5326,"position":0},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"November 1, 2008","format":false,"excerpt":"I want to apologize for the delay in getting this out until Saturday.\u00a0\u00a0 Due to some technical difficulties and some new things I'm going to be implementing, Friday was spent working on computer issues.\u00a0\u00a0 Yeah, I know, a fun way to spend a Friday..... So, here we are at the\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8627,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8627\/lower-june-2009-mortgage-rates-rely-on-central-bank-action\/","url_meta":{"origin":5326,"position":1},"title":"Lower June, 2009 Mortgage Rates Rely On Central Bank Action","author":"Brian Brady","date":"May 28, 2009","format":false,"excerpt":"May Day in the mortgage rates market is over.\u00a0 The market got spooked by triangulated opinions about the viability of the US Treasury as a going concern.\u00a0 In response, mortgage traders sold off mortgage-backed securities, some 3-4%, in 4 days, to drive mortgage rates from 4.75%\u00a0 to the 5.375% current\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1944,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1944\/federal-funds-rate-cut-by-a-half-point\/","url_meta":{"origin":5326,"position":2},"title":"Federal funds rate cut by a half-point","author":"Greg Swann","date":"September 18, 2007","format":false,"excerpt":"Here:The Federal Open Market Committee cut its benchmark federal funds rate by a half percentage point to 4.75%. In an effort to ease the credit crunch, the Federal Reserve also reduced its discount rate in lockstep to 5.25%. This is the first cut in the federal funds rate since June\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":982,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/982\/peeking-into-bernankes-crystal-ball\/","url_meta":{"origin":5326,"position":3},"title":"Peeking into Bernanke’s Crystal Ball","author":"Brian Brady","date":"February 2, 2007","format":false,"excerpt":"Do you want to look into the crystal ball through the eyes of Federal Reserve Chairman, Ben Bernanke? Will that help you predict mortgage rates and housing prices for 2007? I try to outguess the Fed all the time and I've decided that we'll see a significant decline in short-term\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6152,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6152\/the-fed-translated-3\/","url_meta":{"origin":5326,"position":4},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"December 16, 2008","format":false,"excerpt":"Release Date: December 16, 2008 The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1\/4 percent. What\u2019s up with the \u201crange\u201d of rates?\u00a0\u00a0 Well, they\u2019d look pretty foolish if they said they wanted the rate to be at .25%\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9504,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9504\/the-fed-translated-and-why-it-isnt-good-for-interest-rates\/","url_meta":{"origin":5326,"position":5},"title":"The Fed Translated – and why it isn’t good for interest rates…..","author":"Tom Vanderwell","date":"August 13, 2009","format":false,"excerpt":"My apologies for taking almost 24 hours after the Fed to get this up.\u00a0\u00a0 As I\u2019ve done in the past, I want to go through what the Fed said yesterday and give some insights into what I think it means for the housing and mortgage markets.\u00a0\u00a0 You can find the\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=5326"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5326\/revisions"}],"predecessor-version":[{"id":5328,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5326\/revisions\/5328"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=5326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=5326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=5326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}