Chris Catanese

What are the chances that we would wake up today to hear that the Federal Reserve and JP Morgan Chase Bank needed to loan money to Bear Stearns to help them stay afloat.... I thought Bear Stearns had DEEP DEEP POCKETS.. I guess not that deep... HOLY COW!!!

On Wednesday, the CEO of Bear Stearns was on the early morning show Squawk Box on CNBC... The hosts asked pointed questions and repeatedly the CEO answered that they had a strong balance sheet, and that they were in good shape financially... 48 hours later Bear Stearns was using the emergency lifeline to call the Fed and set up company saving loan for billions....

After the announcement this morning, Jim Cramer also of CNBC said that it was possible that things in a business like Bear Stearns could change in a matter of hours or days, and that the CEO could have been telling the truth at the time of the interview...

This news of the Prop Up of Bear Stearns by the Fed and JP Morgan Chase caused stocks to lose favor quite rapidly... Down 300 pts at one point the stock market clawed back to only down 100 pts before George Bush spoke at the Economic Club of America....

At some point in his speech he noted that he was... " An optimistic type of fella" .... which made me think of the campaign slogan of Herbert Hoover in 1928.. "A chicken for every pot"...

The last time that I checked, the economy didn't get points or a boost from motivational speeches from politicians that are completely out of touch with the reality of the current situation. Clearly if Ben Bernanke and his team of Fed Governors don't know what is coming down the pike at us in economic terms.... How in the world can George Bush be so blindly optimistic.....

THE GOOD NEWS IS>>>>>>>>>>>>>>>> INTEREST RATES ARE HEADED DOWN!!!!

LET'S SELL SOME HOUSES!!!

I HOPE THIS INFORMATION CLEARS UP THE MURKY PICTURE OF WHEN ALL OF THIS STIMULUS WILL START TO 

TRICKLE DOWN TO THE LITTLE GUYS!!!     Basically late summer.....

AFTER A GREAT WEEKEND>>>>>>        I wonder what this week could bring.   Good things I am sure!!!!    

There has been talk this morning on Squawk Box about getting the Fed involved as a buyer of Mortgage Agency 

Products.....   Mortgage Backed Securites...

THIS WOULD BE GREAT AND BRING SOME CERTAINTY TO AN UNCERTAIN SITUATION!!!!     THE CONVENTIONAL MORTGAGE MARKET.

All the smart people on TV these days seem to realize at least one thing.....     If the average American has to make their way on

what they have right now as a mortgage...     It could be a tough road.      

A good percentage of America needs/wants to refinance into a lower FIXED interest rate and hunker down in the house that they like for the long haul..... or the short haul, whatever their 

choice might be.      Without a good bit of these wanne be refinancers getting their refinances accomplished....... the average american consumer's purse strings will continue to be constrained 

for months and years to come.    This means that whatever state the economy is in right now....   a pre Recession, or a Recession 

depending on who you talk to...    this state would be extended, and that we might be in this type of situation for a while.    

I VOTE FOR LOWER INTEREST RATES FOR THE REST OF 2008!!!!     NOW WHERE ARE THOSE SUPER DELEGATES AT WHEN I NEED THEM??

WHO'S WITH ME???

The bond market put up a mild rally yesterday after Fed Governor Kohn said his piece. The 10 year bond opened at 3.83% versus 3.92 on Monday morning. The big news today in that Bernanke will testify about monetary policy. This Fed seems more able and more comfortable to speak its mind. The latest telling stat about the looming recession is that 45% of Economists believe that a recession is imminent. The other 55% think that we will skirt a recession or avoid it entirely. Chances are that The Fed will continue it's easily policy in the coming months in an effort to turn the tide that is and remains a credit crunch on large sections of the consumer world. Job numbers are out later in the week and will be scrutinized closely to see which direction the employment market is really heading!!

If any ActiveRain member wants a copy of The Ultimate First Time Buying Guide, or The Ultimate First Time Closing and Settlement Table Guide just let me know. I can get a copy of it out in the mail to you. Both books are over 70 pages and contain some of the most important first time buying and closing information available.

As the end of February nears, interest rates are at their highest levels since the end of last year. Many things have weighed on the market to move interest rates higher. This morning's Real Estate numbers were slightly negative, but because they were being predicted to be a lot worse interest rates continued to move up.

New home prices were down 4.6% for January and the new median house is worth $201,000

Existing home sales were down 0.4 percent for the month of January.

Inventories roses more than 5% and were up more than 18% as compared to a year ago. This means that it will take even longer to sell your average listing.

Interest rates are now approaching the 6.25% mark on 30 year fixed rate conventional money.

I am still able to do my famous.... "No Fee Refi" deal for anyone that is interested. It was a lot easier and attractive at 5.625% and No Fees than it is at 6.25% and No Fees.

I have advised my clients that decided not to lock in at 5.625% to get their appraisals done, and to get approved and keep an eye on the market. This way once the market cooperates they can lock in, and close in less than a week!!

As always, don't hesitate to give me a shout on my cellphone if you have questions. (215) 870 - 3060