Even though there is a focus on the Fed throwing baskets of money to the banks, thing are not still not great.  Thursday the market tumbled to the point of exhaustion. You know, fear of recession and all that.

 

My mother was enthusiast that things were getting better.  She heard on the radio that banks were lending more money, she so informed me on the way to see “W” the other night.  As I set her straight on the ticket line ($10.75), this is what I told my Mother:

 

·        Yes the Fed has pledged to distribute money to the banks, but we do not know if they got it

·        If they got it, they are holding onto it until they get a great offer from another bank to pay a higher interest rate to borrow it

·        They did reduce interest rates on home loans to qualified buyers

·        They increased rates to unqualified buyer

·        The notched up the guidelines to obtain residential mortgages

·        They made it more difficult to get approved

·        They are understaffed, under-trained and overworked

·        They lower credit lines on credit cards

·        They removed the hope of getting car loans for anybody other than Lee Iacocca

·        They barely offer student loans for college education

 

So, I we concluded as we opened up our bag of candy we brought from home (movie theatre popcorn is $5.75- hold the butter), things are not so rosy.

 

So W, what next?

 

 Dale Siegel

PS: The movie stunk!