N.Y. Giants Open N.Y Stock Exchange: Market and Interest Rates Drop!

OK, As a Patriot fan, I cannot help it! The New York Giants, who will meet the New England Patriots for the Super Bowl, were there this morning at the ringing of the bell to open today's session of the New York Exchange. The Dow Jones Industrial Average then dropped over 465!

Then more news. Around 10:30 am came the announcement that the Federal Open Market Committee, the Federal Reserve, had dropped the federal funds rate by 75 basis points (3/4 of a PERCENT) to 3 -1/2 percent.

While cheering for the Patriots, do we also cheer for the economy after hearing this news? This certainly shows the level of concern for a recession in our economy.

The President and Congress are meeting in urgency on the tax rebate/refund idea. This would give $800 to individual taxpayers and $1600 to married couples.

There is a hint that this refund to taxpayers will be part of a package that will also have some stimulus for business .

What will be the impact of the rate cut on the housing market? Obviously there is no change for existing fixed rate mortgages, but where will the rate go for future loans?

The immediate impact of this rate cut will be on existing adjustable rate mortgages and credit cards. It is hoped that this will bolster consummer confidence and spending. The next date for the number to be published is Jan 29th, with the FOMC meeting scheduled for January 29th and 30th.

With the housing still projected to decrease, we're not necessarily at the bottom yet. Here in New England, particulary in Massachustts south of of Boston, in Norfolk and Plymouth counties, the drop is not as severe as in many other places.