Wednesday, October 29, 2008

Well, that went exactly as planned...

So the Fed cut rates by 50 basis points and money poured back into the economy, mortgage bankers once again could afford bottles of Dom to give to their Real Estate Agent friends and every soccer mom treated herself to a new Louis Vuitton bag for being such a trooper during this difficult time.

Sarcasm, pass it on.....

The markets were happy that things held throughout the day, but did you see that close? The market dropped about 360 points in 12 minutes!!! I'll repeat that healthy markets don't act like this.

Tomorrow's GDP number will dominate the headlines. The consensus seems to be that GDP fell 0.5%. This would fulfill half of the requirement for determining when we are "officially in a recession". I don't have a good read on this number, but it will definitely determine the initial moves in the market tomorrow.

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I'm starting to hear anecdotal evidence that credit card companies are lowering limits. If anyone gets one of these dear John letters from your bank (lowering your credit limit) shoot me an email - grindstonefinancial at gmail.com

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Hey, it's been a couple of days, shouldn't we be passing another $600 billion bailout?

This latest bailout making the rounds is being sold as help to homeowners. However, it is really a bailout to those that bought the bad mortgages. Another plan that sticks it to the frugal, and those that didn't stretch too far to buy a house they couldn't afford.

"US regulators are working on a new federal program that could provide government guarantees for up to $600 billion of home mortgages to help prevent foreclosures, a source familiar with the discussions told Reuters on Wednesday.

The plan, being hammered out by the Federal Deposit Insurance Corp and the U.S. Treasury, could provide guarantees for up to 3 million at-risk mortgages, said the source, who spoke on condition of anonymity because the program is still being discussed.

The plan would provide federal guarantees to entice lenders to ease the terms of troubled mortgages—something that lenders have been reluctant to do on a large scale so far. The expected cost to the government would be a fraction of the value of the guarantees, as the intent of the program is to prevent defaults on home loans.

The problem here is that if and when people default in 2009 as unemployment skyrockets, guess who pays for the default -- Mr. and Mrs. Taxpayer again.

This just delays the inevitable and spends more of our money in the process. If we really want throw away our money, couldn't we at least get something for it? Clean energy, new transportation systems, city infrastructure, buy up all of these crappy McMansions and bulldoze them, etc, etc....

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From the file of "Can that be true?" - The UK Daily Mail reported that Copper Door Handles can effectively kill 95% of supergerms.

Making door handles, taps and light switches from copper could help the country beat superbugs, scientists say.

A study found that copper fittings rapidly killed bugs on hospital wards, succeeding where other infection control measures failed.


In the trial at Selly Oak hospital, in Birmingham, copper taps, toilet seats and push plates on doors all but eliminated common bugs.

It is thought the metal 'suffocates' germs, preventing them breathing. It may also stop them from feeding and destroy their DNA.

Lab tests show that the metal kills off the deadly MRSA and C difficile superbugs.
It also kills other dangerous germs, including the flu virus and the E coli food poisoning bug.


Although the number of cases of MRSA and C difficile is falling, the two bugs still claim thousands of lives a year.

My mother will be at Lowe's later today special ordering copper faucets :)

Cheers!

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