Money in the bank

Just read a pretty lengthy Forbes article from their investment team.

Tenor in a nutshell was that when mortgage rates drop to 4.5% and stay there, or lower, good things will happen.

It puts dollars in everyone’s pocket immediately – “a stimulus plan that actually works immediately”.

It creates a frenzy of refinancing, which gets rid of the majority of the toxic assets on lenders balance sheets – allowing them to get back into giving credit again.

Helps dry-up the large volume of foreclosures, as people will be buying again.

Sounds like a plan!

Harvey Dorland