My New Blog

This is a copy of an e-mail sent to me for my clients, I thought it was good enough to share here. I hope this helps. If you still have questions please give me a call  773-604-7111 x231

Big Financial News and Moves Today September 19, 2008

Several unprecedented moves were announced today by the government:

First, Americans, worried are about the stability of their bank in light of several recent bank failures, recently pulled $180 billion out of money market funds. Though most investors have always considered money markets to be a safe investment, with 100% of their money resulting in a 100% equal balance, recent financial news has caused panic that’s resulted in large withdrawals of savings from financial institutions. Treasury Secretary Paulson announced the US government will now guarantee money market funds, in hopes this will settle the market and investors will leave their savings in place.

Second, the Federal Reserve announced plans to create a market for mortgage debt that investors aren’t buying. This is a huge decision aimed at helping the housing and lending markets in the US. When banks can’t sell mortgage backed securities because investors don’t like the risk they may represent, and aren’t buying, then banks can’t get more funds to lend more money. Since there aren’t any buyers for this debt in the current marketplace, the Fed is stepping in to purchase this mortgage debt and provide liquidity. This should result in an improved housing and lending market. So far, the world financial markets are responding favorably to this move.

Third, the Securities and Exchange Commission banned the short selling of hundreds of financially related stocks. Greedy investors have been short selling stock they don’t own-stock they haven’t bought yet. It’s illegal, l and has caused problems with financial stocks losing value, which then limits their ability to get credit-it’s a cycle that results in short sellers making huge profits, at the financial stocks expense. In essence, the investors are creating a value problem even if one doesn’t exist, to make large gains. This should calm the market further and give financial stocks the ability to compete on a more realistic and level playing field in the market.

All three moves are meant to improve the housing and lending market, and the health of US market and economy in general. Keep tuned for more news, as the Federal Reserve and US government continues to try to strengthen the economy and quell fears of US and overseas investors.

All my best,

Chérie McKeage

Capital Funding Mortgage Company, LLC 
Mortgage Planner
Licensed in IL, MI, IN, WI, FL, CO

Residential and Commercial Lending

I just came back from the German Fest in Lincoln Square, in Chicago.
It is loads of fun with games, music, food, beer, and my favorite Plum Cake!

This fest will continue through Sunday Sept 7th.

Location: Western, and Leland, and Lincoln near Lawrence. It is right next to the Western Brown Line Train Station.

Admission is free, tickets for food and beer are at cost.

My office is one train stop away at Rockwell.

Don't forget to enter the sweepstakes. You could win $1,000! Use the link on the home page of this website. I hope you win!