Here comes another bailout

After bailing out banks and lenders, they are now bailing out home speculators. Yes, the tax payer dollars to freeze resetting ARMs.

The worse part about this is it's only freezing the rate for a period of time. It's just putting the Armageddon into the future. So all the speculators who bought at 2 percent are going to have the rates frozen at 2 percent. I wonder if I get a 2 percent ARM, will I qualify?

Whatever happend to saving money? Putting down 20 percent, if not more.

One thing to remember is that the Fed only determines the Short term rates. The long term rates are determined by the foreigners investing in the US. When they stop buying, the rates are going to go through the roof.

Currently, China and Oil countries are buying the treasuries. If the oil prices go down, will the oil countries stop buying the dollar? Just yesterday, there were news of Russia pricing gas in Rubble. Will China stop buying the dollar after the olympics? It remains to be seen because they have as much to gain as the US does in keeping the dollar artificially low. But if the value of dollar keeps going down then what do they do?

It may take some time, but there is only one way for dollar to go in the long run...DOWN.

FHLB's bailing out Countrywide and other banks. Fed bailing out the stock market that is at record levels. Now the fed bailing out speculators.

Bailouts everywhere!