| U.S. crisis hits local mortgages
THE US mortgage crisis has hit Australian home buyers for the first time after one lender yesterday hiked its rates by up to double last week's official interest rate rise. Bluestone, with about $3billion worth of loans on its books, yesterday blamed higher funding costs as a result of the global credit squeeze for its decision to lift its lending rates by between 17 and 55 basis points. The rise comes on top of the 25-basis-point hike prompted by last week's rise in official rates, which may not be the last this year after the Reserve Bank warned yesterday that inflation was running at the top of its comfort zone. Many economists believe the warning suggests official rates, which hit 6.5 per cent last week, will rise by a further 25 basis points before the end of the year, and possibly before the federal election.
The Federal Reserve keeps interest rates on hold at 5.25%
FXstreet.com (Barcelona) – The Federal Reserve's Monetary Policy Committee has decided to maintain interest rates unchanged at 5.25% after their monthly monetary policy meeting.The decision has been taken in a context of moderate economic growth, according to the Federal Reserve's statement, with volatile financial markets and tighter credit conditions for households and businesses. Nevertheless, according to the Fed the economy seems to be expanding at a moderate pace over the coming quarters, supported by growth on incomes and employment.The odds are now in favour of a rate cut before the end of the year pressed by the economic slowdown U.S. economy is going through, specially notorious in the housing market and mortgage sector. On the other hand, higher than desirable inflation keeps the Federal Reserve´s aim off the temptation of a too fast rate cut, although readings on core inflation seem to have entered a moderation cycle.
Federal Reserve finds banks tightening standards on subprime mortgages
WASHINGTON (AP) - A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported that they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found that 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as "Alt-A" loans that offer such features as limited verification of incomes.
Venezuela boss bites U.S. hand that feeds him, spreads oil wealth for power for the poor, himself
Second in a series on embattled Venezuela by Lowell Blankfort, prize-winning Post columnist and former co-owner, and his wife April, who have returned from almost three weeks in that country so important to American oil supplies and, increasingly, the future of Latin America. For most of Iran's 70 million people, life is a bummer. But they have one consolation, they will tell you. While in an oil-short world, most other people are paying through the nose to fuel their cars. Iran is loaded with the stuff and Iranians never need worry where their next gallon of gas is coming from nor overpay for it. Well, earlier this month Iranians had a shock. Their government started rationing gasoline. Iranians rioted against their loudmouth president who defended gas rationing as part of an Iranian "economic revolution." Angry drivers set fire to more than a dozen gas tanks.
Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks
Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks By JEANNINE AVERSA Associated Press NEW YORK --Federal Reserve holds key interest rate steady: Policymakers cling to hope economy will overcome risks Wall Street turbulence, Main Street credit problems and a nationwide housing slump pose increasing risks to the economy, the Federal Reserve said Tuesday, even as it left interest rates unchanged. Although Federal Reserve Chairman Ben Bernanke and his central bank colleagues acknowledged challenges that have intensified since their last meeting in late June, they nonetheless expressed hope that the economy will safely make its way. The policymakers also clung to their belief that the biggest potential danger to the economy is that inflation won't recede as they anticipate.
U.S. crisis hits local mortgages
THE US mortgage crisis has hit Australian home buyers for the first time after one lender yesterday hiked its rates by up to double last week's official interest rate rise. Bluestone, with about $3billion worth of loans on its books, yesterday blamed higher funding costs as a result of the global credit squeeze for its decision to lift its lending rates by between 17 and 55 basis points. The rise comes on top of the 25-basis-point hike prompted by last week's rise in official rates, which may not be the last this year after the Reserve Bank warned yesterday that inflation was running at the top of its comfort zone. Many economists believe the warning suggests official rates, which hit 6.5 per cent last week, will rise by a further 25 basis points before the end of the year, and possibly before the federal election.
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