How quickly/slowly will the mortgage rates fall following the Fed's reducing the federal funds rate to 0-.25%?

With the fed lowering rates its hurting the banks pretty badly right now as far as the cash they have and their ability to loan out money.

This crash is the net result of Mr Greenspan dropping the Fed Funds rate everytime someone got a parking ticket.Buy and hold in sunbelt markets.

Last week, Federal Reserve Chairman Ben Bernanke said the banks will need even more money to shore up their damaged balance sheets and feel secure enough to lend more freely. “Our economic system is critically dependent on the free flow of credit,†he said. “More capital injections and guarantees may become necessary to ensure stability and the normalization of credit markets.†And just in case U.S. lawmakers and Barack Obama’s new administration didn’t hear clearly, Fed Vice Chairman Donald Kohn delivered a similar message.

Look at the growth of the Fed Gov't since the War on Terror kicked off.

If they have a billion in dept, they are restricted from lending up to 5 times that amount by the feds.

pid=20601087&sid=a6p0Sot13ROg&refer=home The confirmation opens the way for the New York Fed to name a new president of the central bank's main liaison with Wall Street.

The Fed announced a plan to bail peole out if they are at risk of foreclosure:http://news.yahoo.com/s/nm/20090127/ts_nm/us_usa_fed_foreclosureOf course, if you were responsible and took out a loan that you could afford you are out of luck.

I just want to bring up a website called http://www.campaignforliberty.comIt's Ron Paul trying to organize grass roots folks to run for local offices and espouse a platform of free markets, and individual liberty - pretty radical ideas in these times!

It is said that during the last century Carlo Alberto, king of Piedmont and Sardinia, disembarked on the island in search of the mythical goats of the golden teeth (phenomenon caused by a grass that causes these reflections), and had remained so spellbound by it as to nominate its only inhabitant, Paul Bertolini, "king of Tavolara".