commercial markets

Banks Cannot Survive Government Competition

Todays headlines are "Tumbling stocks and rising government financal instruments"

With a fiscally out of control government trying to plug up holes during an election year almost every step to financial ruin is being taken. Stocks must tumble from their artificially inflated prices as the money to speculate and make the rising prices disappear. Stocks must tumble as the government steps in to nationalize commerce. This week also saw dropping mortgage rates and how that fits in brings you to the twilight zone.

30 Year mortgages see new low!

As the US government nationalized the home mortgage market the week has started with an abundance of mortgages available at rates not seen since last year. After bailing out Fannie Mae and Freddie Mac, absorbing close to 700 billion in outstanding bad mortgages onto the tax payers backs the newly government run corporations find they have an inside track on cheap money and virtually print at the expense of future generations diluting an already devalued dollar.