Volatile Times - Tylenol Anyone?
Posted September 14, 2008
Updated September 15, 2008
Does anyone have a large bottle of Tylenol because Mr. Bernanke and Co are going to be dealing with a large headache tomorrow on Wall Street?
It looks as though Lehman Bros is going to be forced into bankruptcy – potentially Bank of America is going to be buying Merrill Lynch – and AIG seems to be in trouble. The Fed has their work cut out for them this week – now they’re dealing with the Global psyche versus just the American Confidence levels… I’m confident they will step in and do what is necessary to curb international anxiety, but what does this mean for us in the housing business?
This could be very good news. Potential emergency rate cut? Inflationary fears subsiding, are we staring down the barrel of the housing rescue gun? I would say there is a good chance that we could be given some good housing news this week in terms of lower credit costs and a boost of consumer housing confidence – but not necessarily consumer economic confidence – those are two separate yet intermingled issues.
I’ll update you tomorrow as soon as the smoke clears – but just know that Monday on Wall Street will be pretty ugly.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.