Daily Real Estate News - October 7th, 2008
Wall Street took a nose-dive Monday, with the Dow Jones Industrials plunging more than 800 points at one point during the day before finishing down 370. The sell-off on Monday sent the Dow below 10,000 for the first time in four years.
The US government, facing increasing pressure to do something about the unstable financial markets, is reportedly weighing a plan to buy massive amounts of unsecured short- term debt in a dramatic effort to break the credit clog.
The market for this financing, in which many companies rely to make payrolls and purchase supplies, has virtually dried up.
Pressure is also growing on the Fed to cut its key interest rate, now at 2 percent. Many predict the Fed will act on or before its next meeting on October 28-29. This really doesn't affect mortgages directly but can have an impact on them.
Treasure Secretary Henry Paulson has tapped a former Goldman Sachs executive Neel Kashkari who has worked with Paulson at the department since July 2006, to serve as interim head of the government's effort to unclog the credit markets.
Source: The Associated Presss, Jeannine Aversa (10/07/08)
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