August 27th, 2009 12:33 PM by Scott Bray
I watch CNBC most of the day usually. I heard an interesting comment they the guest said that the Gov't was lending very cheap money out to institutions and banks at near 0-1% and these companies have been using the money to buy stocks. He said he thought the reason that we are up so much in the stock market was b'c of this "wall of money".
He said the Gov't had given out approx $270 billion of the $300 billion that they had allotted for this time period and that the Gov't was pulling back putting more cheap money out there. That was the reason the market recently has stopped going up higher & higher each day. The Gov't isn't going to give details on when they will release more $$$ into the economy through low interest rate bonds until their Sept FOMC meeting (Federal Open Market Committee - meeting).
So now that stocks has stopped...Rates are trending lower. So now's the time to refinance if you missed the boat in the spring!! Big Mutual funds are locking in their gains & selling stocks for bonds which lower interest rates including mortgage rates...
So it's going to be interesting from today 8-27 through my next post in early Spet to see if rates do trend lower....and also the stock market :0)
-Scott