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| Sep. '07 |
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The end of summer is near but we still have work to do! This month's newsletter features a very timely article on exactly what the "Fed Discount Rate" is and what it means to the housing market. We are also promoting our latest Short Sale seminar this Friday (Sept. 21-hurry this won't last) at the San Diego Convention Center! Finally, living in California, it is always important to be prepared so we've included some Earthquake tips and Autumn Reminders - Enjoy!
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Earthquake Tips
Would you be able to ride it out if an earthquake hit today...
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What is the Fed's Discount Rate and Does it Affect Housing?
The Federal Reserve rate cut of last month failed to stop the bleeding in the U.S. stock market. That's because the Fed cut the "discount" rate, not the federal funds interest rate. What's the difference and how will housing be impacted?
You won't find the answer on financial news sites. They talk in jargon. So here's a little lesson in American federal money flow management.
The Federal Reserve is the bank of the federal government and the guardian of the U.S. economy, and as such, regulates monetary and credit policies such as buying and selling securities, setting the cost of credit (interest rates,) how much money is available to banks for borrowing, and how fast and at what rates the money has to be repaid. The idea behind the Federal Reserve is to keep things running smoothly, so banks that are members of the Fed are federally insured, which is reassuring to depositors like you and me.
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San Diego Area
