CHESSNOID

I just finished watching my favorite TV show again. It is building up to a dramatic and thrilling finale. Only 2 episodes left and then Dexter is over. I know there is a 3rd book out, but the way this show makes it look like is that Dexter is coming unraveled and is on the verge of getting caught. Funny thing is after it is done, there is always that empty feeling of nothing to look forward to. Just like HBO’s Rome series which lasted 2 seasons only. You know what I mean? I guess all I can do is just enjoy the last 2 episodes left.

This week the stock market should be another wild ride. Last week it made an excellent comeback. The previous week it looked like it was going on a long plummet. It seems like the Dow is moving in triple digits everyday or every other day in both directions just depending on what news comes out. This still ties into the housing bust, but the federal reserve and major banks are working on a program to freeze the subprime loans interest rates which will in turn stop the payments from increasing. This is definitely an idea outside the box that I didn’t see. I thought investors of those loans would be upset because they have a contract that calls for certain returns on their investments. Now that it is such a big mess and the federal reserve has decided to take a more hands on approach, I guess the banks will be allowed to break their contract.

I have heard that lenders may freeze the teaser rates on all the subprime loans that have not reset yet but are paid current. I can’t really see how this will play out and if this will truly solve the actual problem. There is so much momentum in the plunging home prices that I don’t know if the homeowners really want to stay in a depreciating asset.l The houses here in California are still overpriced in the half million dollar range with payments over $5,000 a month depending on the loan type. I don’t know if all the people who took out these subprime loans were investors or homeowners who want to live long term in the house. I think that will determine whether they want to be bailed out by the government or not.