Press Release
Release Date: December 16, 2008
For immediate release
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.
Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite strained and credit conditions tight. Overall, the outlook for economic activity has weakened further.
Meanwhile, inflationary pressures have diminished appreciably. In light of the declines in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate further in coming quarters.
The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. In particular, the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
The focus of the Committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level. As previously announced, over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant. The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities. Early next year, the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses. The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Christine M. Cumming; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh.
In a related action, the Board of Governors unanimously approved a 75-basis-point decrease in the discount rate to 1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Richmond, Atlanta, Minneapolis, and San Francisco. The Board also established interest rates on required and excess reserve balances of 1/4 percent.
mortgage backed securities, you can look for substantially lower rates. This is the move that may really spur home sales. Here is the press release from the Fed...
Press Release
Release Date: November 25, 2008
For release at 8:15 a.m. EST
The Federal Reserve announced on Tuesday that it will initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the Federal Home Loan Banks--and mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae. Spreads of rates on GSE debt and on GSE-guaranteed mortgages have widened appreciably of late. This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally.
Purchases of up to $100 billion in GSE direct obligations under the program will be conducted with the Federal Reserve's primary dealers through a series of competitive auctions and will begin next week. Purchases of up to $500 billion in MBS will be conducted by asset managers selected via a competitive process with a goal of beginning these purchases before year-end. Purchases of both direct obligations and MBS are expected to take place over several quarters. Further information regarding the operational details of this program will be provided after consultation with market participants.
Meredith Whitney the most reliable of the banking analysts told the New York Post today that Citigroup is in big trouble and their CEO Vikram Pandit is wrong in thinking he can survive in its current form.
"Pandit is wrong, Citi will not be able to stay in its current form," she said, adding that the banking giant must break itself up and sell off the pieces to raise capital and reduce its size.....
"Citigroup is in such a mess Stephen Hawking couldn't turn this company around," the money maven added. "It has lost the most money of all the banks, and has the greatest leverage."....
"Citi is wrong if they say they are adequately capitalized. No bank is adequately capitalized today and Citi is no exception," she said...."
This will get ugly quick and it looks like the government will get involved soon...
Meredith Whitney the most reliable of the banking analysts told the New York Post today that Citigroup is in big trouble and their CEO Vikram Pandit is wrong in thinking he can survive in its current form.
"Pandit is wrong, Citi will not be able to stay in its current form," she said, adding that the banking giant must break itself up and sell off the pieces to raise capital and reduce its size.....
"Citigroup is in such a mess Stephen Hawking couldn't turn this company around," the money maven added. "It has lost the most money of all the banks, and has the greatest leverage."....
"Citi is wrong if they say they are adequately capitalized. No bank is adequately capitalized today and Citi is no exception," she said...."
This will get ugly quick and it looks like the government will get involved soon...
It will be difficult for the U.S. Government to allow another day of market turmoil for this financial behemoth. Paulson and Bernanke are, no doubt, trying to broker a private deal for them, but it wouldn't surprise me to see some sort of bridge loan or backstop similar to AIG or Fannie/Freddie. Look for this to occur before the Russian/Asian market open tonight, EST.
This will be another interesting week...
I am very involved in my community. I have many passions besides marketing, but I love helping clients reach their full potential. Wife-Susy Son-Percy Dog-Traveler
After several years in the financial services industry with MetLife and his own company, Pilot Financial Services, Mr. Manders had an opportunity to learn the mortgage business and made the most of the opportunity. He recently earned the designation of Certified Liability Advisor (CLA). The program, Manage Liabilities Into Assets, provided an intense two day education that involved various liability management concepts, strategies, and case studies. The program is offered to mortgage professionals to assist them with the integration of their client's borrowing and related liabilities as a core step toward financial independence. Completion of the training allows Billy to provide consumer advice on how to best build wealth through the effective management of liabilities. Mr. Manders also has his Certified Mortgage Planning Specialist (CMPS) certification and was the first Mortgage Banker in the State of Alabama to achieve this designation. Billy is certified as an instructor for Realtors, Financial Planners and CPAs needing state required continuing education credits.
Mr. Manders was recently chosen as one of 40 mortgage advisors from around the country to participate in the inaugural ground-breaking liability management Mentor Program by Kendall Todd, the leading provider of strategy, content, tools and training for mortgage and Financial Advisors seeking to maximize their clients wealth creation through management of their liabilities. As a Series 6 and 63 licensed professional, Mr. Manders has a unique ability to understand the power of incorporating the mortgage you choose with your overall long and short-term financial strategy.
He is the founder of The Manders Group, The Institute of Wealth Strategies, and The National Institute of Financial Education(along with several financial professionals from around the country) where he spends much of his time educating clients, financial and real estate professionals on how to effectively use a mortgage as a tool to build financial stability and create wealth.
Billy is very active in his community. A member of the Board of Director's for several organizations in the Mobile area:
The Mercy Medical Foundation--Co-Chair
Goodwill/Easter Seals of the Gulf Coast
The Drug Education Council of South Alabama
The Mulherin Custodial HomeMr. Manders is a 2008 graduate of Leadership Mobile, a year-long program that targets emerging leaders in the community.
--First-time Homebuyer Specialist
--Foreclosures(both FHA and Conventional loans available)
--FHA/VA
--In-house underwriting
--USDA
--Financial Education
--Credit Seminar
--Credit optimization
--Wealth Seminars
--CE courses for Realtors, CPA's and Financial Planners
"The Manders Group provided me with exceptional service in obtaining a new mortgage. Billy and Connie were very responsive to my needs and were diligent in their efforts to ensure that I locked into the very best deal the market had to offer. I would highly recommend The Manders Group to anyone looking for a new mortgage, refinance of an existing mortgage, or their consulting arm to explore strategies on restructuring your financial portfolio to minimize risks and plan for your future financial well-being."
Stephen Hand - U.S. Army Corps of Engineers--Mobile, Alabama
"I know that we are not your only deal, but you made us feel that way. I know that you guys make all your clients feel that way. Thank you for getting all this together for us..."
Jason Schmitt, CPA - McKean & Associates, P.A.
"Billy is a very diligent and hard working individual. Despite not doing any business with Billy to date, I discussed my financial situation, and specifically my debt structure with Billy. He gave me excellent advice, and he recommended that I should not change a thing. I think Billy holds his clients and their best interest in the highest regard, even if this results in no economic benefit to Billy. When you are a commission only provider, and you approach your business in the manner Billy does, word gets out, and it pays off in the long-run. I completely trust Billy, and would strongly recommend Billy to anyone that is exploring replacing or entering into debt."
John Hensley - Senior Vice President, Regions Bank
"I have worked with Billy on more than one occasion and highly recommend him to anyone needing financial assistance - be it a mortgage, refinance or just financial advice. He is ALWAYS available to help and answer any questions. He is truly a Top-Notch advisor and goes that extra mile EVERY time."
Sara Cummings--Real Estate Agent--Dauphin Realty--Mobile, AL
"Billy is a thoughtful and smart leader in the financial education community. He has a passion to help others grow financially and truly enjoys his role of educator. I highly recommend working with Billy if you have the opportunity and you might learn and grow from him as I have by working side by side with him. Billy is a man of high integrity and superior knowledge."
Mike Young, - Faculty, National Institute of Financial Education
"One of the most enthusiastic individuals I have had the pleasure of working with. Really works hard and is always determined to do the best job that he can for his clients. I give Billy 5 Stars - someone who truly has other people's best interests in mind."
Timothy Dozier - Owner, Hummingbird Ideas. Inc
"Bill is a very hard worker and he is determined to succeed. His organization skills allow him to make sure that not only is everything in order, but that it is followed up on. In addition Bill has a true desire to help others, something very refreshing in today's world."
Matt Carr, Chief Sales Officer, Fox Filtration
"I strongly encourage, at a minimum, speaking with The Manders Group if you are considering a new mortgage, a refinance, or financial advice in real estate transactions. I have used the Manders Group on two occasions, once for a refinance, and more recently for a new mortgage. On both occasions, I have been nothing but pleased with the active participation of The Manders Group, including their providing of sound financial advice, ease of process, and their ability to "close the deal." They have gone above and beyond my expectations in order to ensure that the product they provided was exactly what I needed, nothing more, nothing less. They are responsive, well informed, knowledgeable, professional, courteous, and diligent. My experiences with The Manders Group have been absolutely positive, and I encourage anyone making or considering to make any financial moves in this market to give Billy a call."
Jeremy P. Taylor, Attorney at Law, Carr Allison, P.C. - Daphne, Alabama
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