trader57

Friday's Rate Cut: A Sign Things Are Really Bad

"The issue is that banks don't want to lend. Period. "

I disagree with that sweeping statement. Banks will still do mortgage lending but only to people with good credit. Countrywide just tapped an $11 billion credit line to fund new mortgage loans last week. I believe the Fed and the Bush Administration will never allow Countrywide to become insolvent. Whatever funds Countrywide needs for mortgage lending will be provided to Countrywide Bank by the Fed.