CNBC has a couple noteworthy stories today.
The financial situation is so bad in Europe right now that banks are reluctant to lend to each other as they normally do. Instead, banks are getting their short-term loans from their customers – some of the world’s largest companies like J&J, Pfizer and Peugeot who have plenty of cash on hand. Banks needing to borrow from your customers? – Yikes!
Also, CNBC reported that the Obama administration is about ready to roll out a program whereby FNMA and FMAC sell big packages of foreclosures to investors as rentals in order to keep sales to owner/occupants from further depressing prices. It should also speed up the process of getting rid of all the “shadow inventory” overhanging the market.