WASHINGTON - The Federal Reserve on Tuesday slashed a key interest rate by three-fourths of a percentage point, moving aggressively to contain a credit crisis threatening to push the country into a severe recession.
The latest action brought the federal funds rate — the interest that banks charge each other — down to 2.25 percent, the lowest point since late 2004. It marked the second cut of three-fourths of a percentage point this year. The first occurred at an emergency meeting on Jan. 22 and was followed by a half-point cut at a regular meeting on Jan. 30.
Fed Chairman Ben Bernanke and his colleagues have now cut the funds rate six times since last September, with the reductions becoming more aggressive since January as the central bank has faced growing turmoil in global financial markets.
However, there has been opposition inside the Fed to the aggressive moves. The latest rate cut came on an 8-2 vote with two members of the Federal Open Market Committee dissenting. Both Richard Fisher, president of the Dallas regional Fed bank, and Charles Plosser, president of the Philadelphia regional Fed bank, voted against the rate cut, arguing they would have preferred less aggressive action.
In explaining its actions, the Fed said that it was having to navigate a difficult policy environment that included sluggish economic activity and rising inflation pressures.
The Fed statement said that "the outlook for economic activity has weakened further" but that "inflation has been elevated" with some signs that expectations of future inflation pressures are rising, a dangerous sign for the Fed.
But the Fed signaled that it stood ready to cut rates further if necessary, saying that "downside risks to growth remain." Bernanke and other Fed officials have said in recent comments that they view the threat of economic weakness as a bigger risk at the moment than inflation given the risks to financial markets.
"Financial markets remain under considerable stress and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters," the Fed said in its statement.
In Jacksonville, Fla., Tuesday, President Bush said the government will take further action — if necessary — to help the sagging economy.
The rate cut Tuesday caps an unprecedented period of Fed actions aimed at trying to stabilize financial markets and ward off a recession or at least keep it from being too severe. While the cut was larger than the Fed's normal quarter-point moves, investors were initially disappointed that the central bank did not cut rates by a full percentage point.
The Dow Jones industrial average fell 100 points within two minutes of the Fed's mid-afternoon announcement but it then resumed climbing and was up nearly 200 points within the first half-hour after the announcement. It had been up 286 points just before the announcement as stocks had posted a strong rally after Lehman Brothers and Goldman Sachs reported better-than-expected results for the first quarter. That came as welcome news following the collapse over the weekend of Bear Stearns, which was forced into a fire-sale to JP Morgan Chase & Co.
The reduction in the funds rate was designed to lower borrowing costs and boost spending by consumers and businesses and thus increase economic activity. Economic growth slowed to a near standstill in the final three months of this year as the economy was hit by a series of blows including the credit crunch, a prolonged housing slump, rising unemployment and surging energy prices.
The funds rate cut quickly triggered announcements from commercial banks that they were cutting their prime lending rate to 5.25 percent from 6 percent, where it was before the Fed meeting. This rate is the benchmark for millions of business and consumer loans.
The spectacular fall of Bear Stearns, which had been the nation's fifth largest investment bank, has raised concerns about what other banks might fail as a result of multibillion-dollar losses that began last year with rising defaults on subprime mortgages, loans made to borrowers with weak credit histories.
The purchase of Bear Stearns by JPMorgan Chase & Co. was helped by a pledge from the Fed that it would supply a $30 billion line of credit to back up Bear Stearns' assets. That offer was the latest in a number of unconventional moves the central bank has made, including employing Depression-era procedures to pump cash into the financial system.
In addition to providing support for the Bear Stearns sale, the Fed also announced Sunday one of the broadest expansions of its lending authority since the 1930s, saying it would allow securities dealers for at least the next six months to borrow directly from the Fed. That privilege had been confined to commercial banks.
In other moves, the Fed last week announced that it would lend up to $200 billion of Treasury securities that it owns to investment banks starting March 27 for a period of up to 28 days in return for a like amount of the investment banks' shunned mortgage-backed securities. The Fed also announced recently that it was boosting the size of special loans it has been making since December to commercial banks.
By MARTIN CRUTSINGER, AP Economics Writer
Tuesday, March 18, 2008
Scripture for Today
VERSE: And we, who with unveiled faces all [contemplate and] reflect the Lord's glory, are being transformed into his likeness with ever-increasing glory, which comes from the Lord, who is the Spirit. -- 2 Corinthians 3:18 http://www.SearchGodsWord.org/desk/?query=2+Corinthians+3:18
THOUGHT: "Transformed ... with ever-increasing glory." In other words, it's an ongoing process, but with the continual help of the Spirit,we're going to arrive at our goal -- to be like Jesus! The point is not to give up on our journey. Let's keep looking to Jesus and keep trusting that the Holy Spirit is doing God's work in us, making us more and more like Jesus each day.
PRAYER: Father, please forgive me for the times when I've let my faith grow complacent and I've lost my focus on Jesus. Please bless me as I try to be more intentional in my plans, especially my spiritual maturity. Please make me more like Jesus each day. In Jesus' name Ipray. Amen. http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080318
THOUGHT: "Transformed ... with ever-increasing glory." In other words, it's an ongoing process, but with the continual help of the Spirit,we're going to arrive at our goal -- to be like Jesus! The point is not to give up on our journey. Let's keep looking to Jesus and keep trusting that the Holy Spirit is doing God's work in us, making us more and more like Jesus each day.
PRAYER: Father, please forgive me for the times when I've let my faith grow complacent and I've lost my focus on Jesus. Please bless me as I try to be more intentional in my plans, especially my spiritual maturity. Please make me more like Jesus each day. In Jesus' name Ipray. Amen. http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080318
Monday, March 17, 2008
The political 'Texas two-step' isn't all bad
Anyone who experienced the kookiness of a Texas Democratic caucus last week may have at some point looked around at the crammed, confused crowd and wondered what the folks who thought up this gem of a Democratic process were thinking. Or smoking.
On some level, I was asking the same questions as I watched people yelling over each other and pledging their support for presidential candidates on random sheets of notebook paper. I can understand the caucus critics, such as state Rep. Sylvester Turner, D-Houston, who are itching to ditch parts of the system that seemed to fail those who left frustrated.
Texas Democratic Chairman Boyd Richie has said Democrats will hash out the issue and discuss several proposed changes to the 20-year-old delegate-selection system, nicknamed the " Texas two-step," at this year's state convention in June. As if, with Hillary Rodham Clinton and Barack Obama still duking it out, Democrats needed more reasons to feud.
Misunderstood
But before anybody condemns Texas ' hybrid primary-caucus process to the scrap pile of hare-brained ideas, it's important to grasp the intentions of the folks who designed it in the '80s.
The process isn't evil. It's just misunderstood.
Other states pick their Democratic presidential nominee in one of two ways: Let the party-faithful do it in a caucus or leave it up to "the people," the regular voters, in a one-person, one-vote primary election.
Texas Democrats — out of indecisiveness or an over-achieving spirit of compromise — tried to do both. Kind of an Iowafornia approach.
The system lets "the people" at the polls choose two-thirds of the pledged delegates who will pick a presidential candidate at the convention level. And it lets the folks who show up at election night caucuses, also known as precinct conventions, pick the remaining one-third.
The chance to pick pledged delegates at the caucuses was intended to encourage grass-roots party involvement and attendance at conventions, where other important issues, such as the party's stance on issues, are decided.
I'm not sure how well that incentive worked in the past since many precinct chairs tell me that, usually, they're lucky if they get five people to show up to caucus.
This concept is also what riles people like Turner, who doesn't like the party faithful having any more say in picking a presidential candidate than the mother of five who can't get off her night job to join the local caucus club.
"It is a process that is skewed more favorably toward some," says Turner. "As someone who recognizes a time when people had to jump through hurdles in order to vote, like poll tax and paying $1.50 and $1.75 to register, I'm just very sensitive to any other hurdles we put in people's way."
Turner says he never liked Texas ' bifurcated system, even before a strange turn of events shoved it into the spotlight this year. Others caution a knee-jerk reaction to dump a system that has run smoothly for the past two decades. "It works wonderfully, as long as it doesn't matter," says Gerry Birnberg, chair of the Harris County Democratic Party.
Since Texas usually plays no role in picking the Democratic presidential nominee, the caucusing amounted to nothing more than a few harmless "attaboys" for the party faithful, Birnberg said.
But this year, with the Super-duper Tuesday states tripping over themselves to get noticed in the presidential election, only to find they canceled each other out, usually irrelevant Texas Democrats found themselves the recipients of overflowing affection from both candidates.
Obama and Clinton were left with seemingly bottomless troves of cash with which to compel Texans not only to vote in what could have been a decisive race, but to partake in the grueling caucus process.
There's a strong possibility that the stars will never align quite like that again.
There's also the argument that, considering the unprecedented turnout of newcomers at last week's caucuses, something about the system had to have worked.
While about 3,000 Harris County voters showed up to caucus in 2004, Birnberg estimates at least 150,000 showed up last week.
"If we just had a primary, we'd have seen a lot of rallies and TV ads, but would we have seen this level of grass-roots organization?" says Ed Martin, Democratic strategist and former state party executive director.
He has a point. At the caucuses I attended, I saw people sign up to be delegates who, a few hours earlier, couldn't have told me what the word meant. Several voters, observing the disorganization, vowed to start volunteering with the party because, as one woman put it, "these people need help."
Martin and others urge patience, saying that lawsuits, sudden changes and intense bickering over party rules may scare off some of the first-time caucus-goers who were compelled to get involved.
Changes may be needed. But no need to be hasty. The Democrats have at least four more years to figure it out.
By LISA FALKENBERG Copyright 2008 Houston Chronicle, March 11, 2008, 6:29PM
On some level, I was asking the same questions as I watched people yelling over each other and pledging their support for presidential candidates on random sheets of notebook paper. I can understand the caucus critics, such as state Rep. Sylvester Turner, D-Houston, who are itching to ditch parts of the system that seemed to fail those who left frustrated.
Texas Democratic Chairman Boyd Richie has said Democrats will hash out the issue and discuss several proposed changes to the 20-year-old delegate-selection system, nicknamed the " Texas two-step," at this year's state convention in June. As if, with Hillary Rodham Clinton and Barack Obama still duking it out, Democrats needed more reasons to feud.
Misunderstood
But before anybody condemns Texas ' hybrid primary-caucus process to the scrap pile of hare-brained ideas, it's important to grasp the intentions of the folks who designed it in the '80s.
The process isn't evil. It's just misunderstood.
Other states pick their Democratic presidential nominee in one of two ways: Let the party-faithful do it in a caucus or leave it up to "the people," the regular voters, in a one-person, one-vote primary election.
Texas Democrats — out of indecisiveness or an over-achieving spirit of compromise — tried to do both. Kind of an Iowafornia approach.
The system lets "the people" at the polls choose two-thirds of the pledged delegates who will pick a presidential candidate at the convention level. And it lets the folks who show up at election night caucuses, also known as precinct conventions, pick the remaining one-third.
The chance to pick pledged delegates at the caucuses was intended to encourage grass-roots party involvement and attendance at conventions, where other important issues, such as the party's stance on issues, are decided.
I'm not sure how well that incentive worked in the past since many precinct chairs tell me that, usually, they're lucky if they get five people to show up to caucus.
This concept is also what riles people like Turner, who doesn't like the party faithful having any more say in picking a presidential candidate than the mother of five who can't get off her night job to join the local caucus club.
"It is a process that is skewed more favorably toward some," says Turner. "As someone who recognizes a time when people had to jump through hurdles in order to vote, like poll tax and paying $1.50 and $1.75 to register, I'm just very sensitive to any other hurdles we put in people's way."
Turner says he never liked Texas ' bifurcated system, even before a strange turn of events shoved it into the spotlight this year. Others caution a knee-jerk reaction to dump a system that has run smoothly for the past two decades. "It works wonderfully, as long as it doesn't matter," says Gerry Birnberg, chair of the Harris County Democratic Party.
Since Texas usually plays no role in picking the Democratic presidential nominee, the caucusing amounted to nothing more than a few harmless "attaboys" for the party faithful, Birnberg said.
But this year, with the Super-duper Tuesday states tripping over themselves to get noticed in the presidential election, only to find they canceled each other out, usually irrelevant Texas Democrats found themselves the recipients of overflowing affection from both candidates.
Obama and Clinton were left with seemingly bottomless troves of cash with which to compel Texans not only to vote in what could have been a decisive race, but to partake in the grueling caucus process.
There's a strong possibility that the stars will never align quite like that again.
There's also the argument that, considering the unprecedented turnout of newcomers at last week's caucuses, something about the system had to have worked.
While about 3,000 Harris County voters showed up to caucus in 2004, Birnberg estimates at least 150,000 showed up last week.
"If we just had a primary, we'd have seen a lot of rallies and TV ads, but would we have seen this level of grass-roots organization?" says Ed Martin, Democratic strategist and former state party executive director.
He has a point. At the caucuses I attended, I saw people sign up to be delegates who, a few hours earlier, couldn't have told me what the word meant. Several voters, observing the disorganization, vowed to start volunteering with the party because, as one woman put it, "these people need help."
Martin and others urge patience, saying that lawsuits, sudden changes and intense bickering over party rules may scare off some of the first-time caucus-goers who were compelled to get involved.
Changes may be needed. But no need to be hasty. The Democrats have at least four more years to figure it out.
By LISA FALKENBERG Copyright 2008 Houston Chronicle, March 11, 2008, 6:29PM
Scripture for Today
VERSE: Join with others in following my example, brothers, and take note of those who live according to the pattern we gave you. -- Philippians 3:17 http://www.SearchGodsWord.org/desk/?query=Philippians+3:17
THOUGHT: "I would rather see a sermon any day, than hear one." I'm not distressed because people want to "see a sermon," but because somany of us don't "practice what we preach." As leaders -- whether as friends, parents, or in positions of authority -- our primarytool of influence is our life of character (or lack of it). Do you practice what you "preach"? All of us who seek to influence others redemptively, MUST! Why? Because most folks need to both hear and see the message before it becomes a part of them.
PRAYER: Lord God Almighty, please forgive me, equip me, and make me fit for your service. Please help me, dear Father, as I try to live a life worth imitating and to lead others to Jesus. I know I can't doeither of those without your power and grace transforming my life.In Jesus' name I pray. Amen.http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080317
THOUGHT: "I would rather see a sermon any day, than hear one." I'm not distressed because people want to "see a sermon," but because somany of us don't "practice what we preach." As leaders -- whether as friends, parents, or in positions of authority -- our primarytool of influence is our life of character (or lack of it). Do you practice what you "preach"? All of us who seek to influence others redemptively, MUST! Why? Because most folks need to both hear and see the message before it becomes a part of them.
PRAYER: Lord God Almighty, please forgive me, equip me, and make me fit for your service. Please help me, dear Father, as I try to live a life worth imitating and to lead others to Jesus. I know I can't doeither of those without your power and grace transforming my life.In Jesus' name I pray. Amen.http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080317
Friday, March 14, 2008
Investment Opportunities
Looking for Investors to Invest in Duplex Development in Southwest area. This is a great opportunity for you to invest in the predevelopment phase of this development. The project will include 35 duplexes. Each investment will include two duplexes that are townhouse style. The development will be convenient to shopping and dining. As part of this family friendly community, there will be a playground for children and community swimming pool and maintained grounds (Contingent upon development).
Property Information
Type: 2 Units
Asking Price: Starting at $169,000
Appreciation Rate: 1.6% (2005-2006)
Property Tax Rate: 2-3%
City: Houston TX
Number of Units: 2 per investment price
Bedrooms: (Per Unit) 3
Bathrooms:(Per Unit) 2.5
Sq Footage:(Per Unit) 1100
Stories: 1 and 2 Story Units
Year Built: 2008 *New Construction
HOA Fees: $35-50 per month per unit
Additional Property Information:
· Seller contribution towards closing cost.
· Property management package
· Investor ready package
Investor Ready Package Includes:
Refrigerator, stove, washer, dryer, blinds, microwave, garage door openers.... Can you say TURN KEY?!
Initial Out of Pocket:
* $500.00 Reservation Fee
* $2500 Earnest Money deposit due at contract
Current Rents In Area:
$950 - $1100 per unit
For more information, Email me at Lsells@swbell.net.
Property Information
Type: 2 Units
Asking Price: Starting at $169,000
Appreciation Rate: 1.6% (2005-2006)
Property Tax Rate: 2-3%
City: Houston TX
Number of Units: 2 per investment price
Bedrooms: (Per Unit) 3
Bathrooms:(Per Unit) 2.5
Sq Footage:(Per Unit) 1100
Stories: 1 and 2 Story Units
Year Built: 2008 *New Construction
HOA Fees: $35-50 per month per unit
Additional Property Information:
· Seller contribution towards closing cost.
· Property management package
· Investor ready package
Investor Ready Package Includes:
Refrigerator, stove, washer, dryer, blinds, microwave, garage door openers.... Can you say TURN KEY?!
Initial Out of Pocket:
* $500.00 Reservation Fee
* $2500 Earnest Money deposit due at contract
Current Rents In Area:
$950 - $1100 per unit
For more information, Email me at Lsells@swbell.net.
Scripture for Today
VERSE: He appointed twelve -- designating them apostles -- that they might be with Him and that He might send them out to preach and authority to drive out demons. -- Mark 3:14 http://www.SearchGodsWord.org/desk/?query=Mark+3:14
THOUGHT: While there are many intriguing and fascinating thoughts in this short sentence, the one phrase that touches my heart is this one:"... that they might be with him ...." This reminds me of that great passage in Acts 4:13: "They recognized that they had been with Jesus." Now I know that we can't "be with" Jesus in the same way the twelve apostles were. But, we do have the four Gospels that tell His story. When was the last time you sat down and read one straight through? When was the last time you read a Gospel and asked Jesus to make Himself and His will known you? Why not spend some time being with Jesus this week!
PRAYER: Holy Father, thank you for the Scriptures. Thank you especiallyfor the Gospels that tell the story of your Son. Please forgive mefor not spending more time getting to know him better. As Irecommit myself to seek after your Son, please bless me with agenuine sense of his presence and a clearer knowledge of his will.In Jesus' holy name I pray. Amen.http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080314
THOUGHT: While there are many intriguing and fascinating thoughts in this short sentence, the one phrase that touches my heart is this one:"... that they might be with him ...." This reminds me of that great passage in Acts 4:13: "They recognized that they had been with Jesus." Now I know that we can't "be with" Jesus in the same way the twelve apostles were. But, we do have the four Gospels that tell His story. When was the last time you sat down and read one straight through? When was the last time you read a Gospel and asked Jesus to make Himself and His will known you? Why not spend some time being with Jesus this week!
PRAYER: Holy Father, thank you for the Scriptures. Thank you especiallyfor the Gospels that tell the story of your Son. Please forgive mefor not spending more time getting to know him better. As Irecommit myself to seek after your Son, please bless me with agenuine sense of his presence and a clearer knowledge of his will.In Jesus' holy name I pray. Amen.http://www.heartlight.org/cgi-shl/todaysverse.cgi?day=20080314
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