US Treasury’s Steel says the Fed needs overall responsibility for the markets in the longer term. And here’s what FedHead Yellen is saying today:
FED’S YELLEN: HOUSING TROUBLES MAY NEED NEW INTERVENTIONS; SAYS FED COMMITTED TO TIMELY ACTION AS NEEDED
- Notes importance of getting credit to low income homes,
- Important to find new ways to blunt mortgage woes, interest rate resets not a major trigger for mortgage defaults
- Says Fed has moved to stimulate demand in face of housing downturn, tighter credit
- Notes national jump in foreclosures as ’sudden and substantial’
- Says fed is keeping a close eye on economic conditions
I read these things, and the only thing I can think of at the moment is, "HEY, YOU, GET OFF OF MY CLOUD!" (Rolling Stones) The proposal’s for bailing out financial institutions (under the guise of worrying about the economy) is making my head spin, because they are so out in left field. I’ll get it under control and give you all a real analysis later. The market’s continue their boring little wave riding into the afternoon.
