On the news this morning it was reported that the number of loans being made by Bank of America and Chase/JP Morgan are down in spite of the massive infusion of federal funds. I do not know when the shift took place but I thought the whole idea behind this infusion was to open up the credit market so the county will get moving again. I hope that the new President will make sure that there are strings attached to any new funds and that there is a general accounting of the money already sent. What did the banks do with the money? In my economic classes in college we were told that banks make money by loaning out deposits, so if the banks are not making loans then how are they making any money. I hope this is not a "contest" to see who can sit on the biggest pile of money.

Many people are very jittery about the current status of the financial market. It should be noted that real estate mortgages are not directly effected by downturns in the arket since investors buying mortgages are looking at the long term and not short term as seen in the stock market. The submarket melt-down was inevidentable due to loans being made to buyers at terms that esculate to the point that they can no longer afford their house payments. It takes disipline to purchase a home, it is a large investment and not only are the payments a factor there is insurance, taxes, repairs and unexpected expernses.