By BLOOMBERG NEWSPublished: May 1, 2008

Following is the full text of the statement released Wednesday by the Federal Reserve:

The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points, to 2 percent.Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.Although readings on core inflation have improved somewhat, energy and other commodity prices have increased and some indicators of inflation expectations have risen in recent months. The committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization. Still, uncertainty about the inflation outlook remains high. It will be necessary to continue to monitor inflation developments carefully.The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity. The committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.Voting for the F.O.M.C. monetary policy action were: Ben S. Bernanke, chairman; Timothy F. Geithner, vice chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Gary H. Stern; and Kevin M. Warsh. Voting against were Richard W. Fisher and Charles I. Plosser, who preferred no change in the target for the federal funds rate at this meeting.In a related action, the board of governors unanimously approved a 25-basis-point decrease in the discount rate to 2.25 percent. In taking this action, the board approved the requests submitted by the boards of directors of the Federal Reserve Banks of New York, Cleveland, Atlanta and San Francisco.

Six major lenders have agreed to widen their efforts to help borrowers of all loans – not just subprime – and allow seriously overdue homeowners to suspend foreclosures for 30 days while affordable loans are worked out.  The plan, Project Lifeline, has been announced by the Treasury Department and the Dept. of Housing & Urban Development.  On a pilot basis, the plan will initially involve six of the largest mortgage lenders, in hopes that more lenders will sign on.  The participants are Bank of America Corp., Citigroup, Inc., Countrywide Financial corp., JP Morgan Chase  Co., Washington Mutual, inc. and Wells Fargo & Co.  All six are involved in a deal that the Bush administration brokered late last year with the mortgage industry to freeze rates on some high-cost subprime mortgages for five years to aid borrowers whose introductory “teaser” rates are jumping sharply higher.  Since then, Treasury Secretary Henry Paulson has urged lenders to expand that effort to cover struggling homeowners with conventional mortgages.The new plan applies to seriously delinquent homeowners, those whose mortgages are 90 days or more past due.It is not clear whether a separate announcement from Countrywide is part of the same effort.  It’s latest initiative, brokered with the Association of Community Organizations for Reform now calls for Countrywide to try to manage payment plans for borrowers that are already behind in payments, regardless of which type of subprime loan they have.

I clearly have an answer that would work … Do You Want To Hear It???  Do You Thing The Feds Would Listen To Me?!?!?!

If the Feds would only reduce the indices, (plural for index) across the board, which affect Adjustable Rate Mortgages, also know as ARM loans, this would solve the problem at hand.  ARM loans are comprised of an Index (ie: Libor, COFI, 1 Yr Treasury, MTA, CODI, COSI, etc.) plus a margin (the profit the bank earns) together this totals the current rate.  With ongoing and rising Indices, this sharp rise in interest rates will continue to increase.  Borrowers with ARM loans would be back to an affordable payment, if only the indices would decrease.  An affordable house payment sets a pattern of consistent and timely payments.  If we can afford our mortgage once again, we would also have more disposable income available.  More money circulated into the economy is a very good thing and equates to more spending and more jobs. 

I don’t get it … this is such a simple concept to incorporate, a no-brainer you could say. Why does our legal and banking system allow so much devastation to take place with the past and present foreclosure process?  Why does this process have to be so complicated, costly, devastating.  It seems that the system in place is not working and unfair to those losing their homes, not to mention the deterioration of the U.S. economy and job market? I just don’t get it … ???  Do you? Some information obtained from The Californian – Tuesday, 2/12/08

The new Economic Stimulus package, presented earlier this month, may impact the economy larger than expected.  The Economic Stimulus package includes increasing the federally insured and conventional loan limits.  This should make the American dream of home ownership safer and more affordable, for the time being.  The conforming loan limits are currently at $417,000 and will be increased to $729,250, until the end of the year.  Since California is a high-cost state, and the median home priced in North San Diego County is well over $500,000, economists estimate an increase in sales of more than 250,000 homes purchased nationwide.

Presently, there is an excellent inventory of homes on the market, combined with below-normal interest rates, in addition to homes priced lower than they have been in years, defines a true buyer’s market.

Buyers beware of a good thing, remain cautious and never get greedy!  Don’t wait to see the bottom of the market.  This will more than likely lead to missing the best buying conditions.

Be prepared and get your financing in order, to determine how much home you realistically can afford. You can do this by applying online on this secure website.  There are also mortgage calculators here on the site that will give you a realistic loan amount and purchase price that you can afford.  

Getting a Realtor in place is also very important!  A real estate professional will help you find the right home, negotiate the best price and make you a player so that you can take advatage of the buyer’s market in 2008.

There is much discussion about illegal aliens and the outraged Americans that are ticked off at those U.S. officials displaying a non-challant action plan.  As we know, these illegals benefit Corporate America.  The money stream and tax dollars that Corporate America pays in taxes, to the Federal Government, each year, is so great an amount, that the Feds don’t want to see that money stream shrink or stop!  The Feds don’t want to rock the boat and slow down their money source and cut their spending.

 It is unfortunate that the working class, middle America, supports this nation and the Feds lavish spending.  The Feds will bend over backwards to allow Corporate America to perform almost any illegal act.  The prostitution of the Feds in business and bed with Corporate America means that the sugar daddy gets what he wants as long as the money keeps coming. 

 Wouldn’t one think that the laws of the land and the home of the brave is for all Americans?  NOT SO!  Americans are led to believe this as the mind-controlled media messages go the direction that the Feds want it go, so that Americans will behave accordingly.  Feds want to keep Americans spending and the flow of money, that makes for a strong economy, to support the Governments spending and reduce their cost of money. 

The topic of the American Dream … homeownership comes to mind … have you heard … The IRS grants Tax ID#s to illegal aliens so that the rich banks can give home loans to these illegal aliens.  It is all fine and dandy with the Government as long as the money keeps on coming.

 Recently published in The Californian newspaper, Sept. XX, 2007, an article regarding this same topic.  It points out that the U.S. Government is buying loans from the secondary market to secure and sell to the primary market and put in securities on Wall Street.  The stocks are then put on the market for all to buy, and secure their investment.  So the saying that the rich keep getting richer and the poor keep getting poorer is true. 

The concept of a separate set of rules apply to the rich and not the poor is also true.  This article points out that banks, regulated by the Corporations Commissioner, can originate and sell financing to illegal aliens.  On the other hand, 50% of all loans originated in the United States are done so by the arrangement of Mortgage Brokers.  Mortgage Brokers are regulated by the State of California, Dept of Real Estate.  In order to originate loans, you must be educated, licensed, regulated and penalized for misconduct and unethical business practices.  Yet, Mortgage Brokers are not allowed to take a loan application, process and submit a mortgage loan package to a bank, from an applicant here illegally, and without a   green card.   In fact, I personally have turned away much business and potential profit as a result of this regulation.

 Yes, I would say that a separate set of rules apply to the rich banks, allowing Corporate America to get richer. Whereas, the working class, self-employed, entrepreneur - Mortgage Brokers, bring much business to the banks.  The Mortgage Banker provides the bank the client, prepares and provides the bank all of the proper documentation and acts as a independent contractor, loan consultant to and for the bank. 

 A slap in the face, is what Mortgage Brokers receive for following the laws set forth by our regulators.  If unethical business practices and breaking laws is what it takes to be rich and successful, then I will redefine success.   

 Our founding forefathers started this nation on the concept of entrepreneurial spirit and free enterprise.  In fact, on the currency now in place, it reads, “In God We Trust.”  This would mean that we are to be reminded each day we circulate money that it is important to do so with a high set of standards that we maintain and have to answer to a higher authority.  Some would say that America was a built on the basis of a Christian nation.  Not sure that our founding fathers would be very proud of the direction this nation has led us on how to earn the almighty buck!