German banks are facing possible liquidity crisis as well. Rumors that a large British insurance company was also forced to borrow from the Bank of Englend discount window ,sent investors on a quality bond buying spree,Making the bond market hotter and in turn benefiting the consumer with lower mortgage rates.
Amazing! it is a global market out there, and we have investors who buy our bonds not only here in the USA, but abroad too! And despite of all the so called liquidity, mortgage crisis, or so called meltdown they still have an appetite to invest in our markets. So I would change the term Mortgage meltdown, to Adapting Mortgage Market! This you will not hear in the media.
Sincerely
Joel Silberstein
