Wednesday, October 17, 2007

Subprime mortgage crisis - End, and when?

According to the Federal Reserv chairman, Ben Bernanke, any early
deeming theory would be vain in connection with how acts the crisis
on investors' and customer's sentiment.

Bernanke added that the interest cut might continue, in turn, the
pecuniary fog hasn't been dissolved, and the stabilization of the market
is still waiting for itself. But he hinted that it may not get that much
worse and that investors and lenders may have learned from their
mistakes.

Bernanke also brushed off concerns about a weak dollar prompting
inflation. When David Malpass, chief economist at Bear Stearns,
asked Bernanke if he thought the value of the dollar impacts inflation,
Bernanke said he did not think a fixed exchange rate would be good
for the economy.

At last, here is an interest additional matter, mortgage originations will
fall next year to the lowest levels since 2000, forcing job losses for at
least 30,000 more home finance professionals, according to a forecast
released on Wednesday by the Mortgage Bankers.

Let me draw the conclusion: crisis doesn't end yet.

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