Fed Cuts Discount Rate

Panic up, panic down...Then business as usual. Just keep in mind that historically the Dow has always moved upward, and so have home values in the Valley. All you have to do is wait a while.
Things to remember:
1) The Fed is cutting the discount rate half a percentage point to 5.75% - This is NOT related to PRIME.
- This will NOT affect Home Equity Lines of Credit or Credit Cards
- This IS a good indicator that the feds will lower the federal funds rate at the next meeting - & will affect PRIME, HELOCS, & Credit Cards positively for consumers.
2) This rate cut is to show support to the banks (remember, this is a liquidity issue not necessarily a credit crisis)
- Fed is telling the banks to keep doing the right thing, lend $$$ to good qualified people.
3) Bad Loans and not so creditworthy consumers are going away - or are not being able to borrow money.
- Good for the long term health of the American Economy & Housing Market
4) Banks and Mortgage Companies that have good business practices and business models will survive and thrive...
and our Real Estate Market along with them!