Click on the post for the full story in Yahoo today.
Chairman Ben Bernanke has urged banks to act boldly---and suggested that the banks write down the principal on some of their loans and suggested that recognizing the loss early would be better than later.....for everyone.
It is my guess that in the dialogue between Mr. Paulson of the Treasury and Mr. Bernanke of the Federal Reserve, Paulson has won the argument and "nothing" has been the action plan. The result of this policy has been the sharp sell off last week and the result will be a plunge in the price of homes since the Fed has signaled that they will talk the talk but will really do little. Bloomberg news even has used the term "forgive" loan principal-----"forgive" is not the normal word usage of bankers. Does not compute. Bernanke says that it does compute if they can look long term.
Click on the post for the story.
Tuesday, March 04, 2008
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