"The Treasury said it would temporarily raise its line of credit to the two mortgage financiers, as well as purchase equity in them [!], a step never taken before, if needed."
And the stupid taxpayer gets stuck with the tab.
"The problems with this are obvious: Putting more mortgage credit risk on the taxpayer's back is likely to be politically unpopular in the short term and would only immediately benefit the company's shareholders.The perception of shareholder benefit from government intervention is something that policy makers were greatly concerned about during the Bear Stearns crisis in March."
A Fed-watcher friend of mine describes this plunder as "privatizing profits and socializing losses." link
"IndyMac becomes the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984." link
From Clark Howard:
Finally, some great news for consumers in the housing market! For ten years, the real estate industry has done its best to keep the power of the internet away from its potential customers. The National Association of Realtors (NAR) and its affiliates have been engaging in anti-competitive practices, conspiring to fix commission prices on real estate sales. Well, they've finally backed down. This is going to make a big difference in how you will buy and sell property in the future.
Before the internet, the only way to know which homes were for sale was to find an agent with a Multiple Listing book, a monthly publication that listed all the available properties in a particular market. It was like a closely guarded secret. But the internet broke open that secret. Non-traditional players jumped into the game and began offering discounted services, or menus of services, letting the consumer pick only those which were necessary. The NAR did all it could to shut down these non-traditional companies. But very soon, real estate commissions will be allowed to float with the free market, and you as a consumer will be empowered. Sellers will be able to pick and choose the specific services they need to sell a property, and buyers will have online access to all available listings - regardless of commission rate. This is long overdue victory.
That said, experienced agents will still be in demand. Houses with unusual or unique features will still require special marketing techniques. Some buyers will still need talented agents to help them navigate through the purchase process, or to fully understand their specific market. But not everyone needs this level of expertise. The free market now offers you a choice,
(chart, inflation-adjusted) link
