Fed to freeze mortgage rates……another fiddle
December 6th, 2007So the Fed joins the Bank of England in changing the rules. The word is that certain sub prime mortgages will have their rates frozen for 5 years. This will ease the pain of borrowers who in some cases face rises of up to 30% on their mortgage bill.
Did i mention that mortgage means “deathgrip”?
Anyway this just shows that for all the hi’ fallutin’ nonsense about free markets we actually live in a system that is far from free. Bush doesn’t really want to hand the next election to the Democrats though he’s done his best to do so in recent years.
But what we are seeing now, as we saw post 1930, is that the financial system can be changed if required and that the fundamental right to create money resides with the people via their representatives. If i owned shares in a bank i would be worried.
Come to think of it if i had money in a bank i’d be worred but humping around gold coins is so 13th century.
I can’t quite work out if this is the beginning of the end or the end of the beginning. I fear its the latter.
Tags: bank of england, banking, credit crunch, federal reserve, financial crisis, markets, mortgage
