Ben Bernanke the U.S. Federal Reserve chairman had to admit that the economy is still stumbling along in it’s effort to get going in a consistent manner. There are various strategies that will be introduced to add additional stimulus in effort to create consistent growth.
The strategies being considered can only be a tempory kick start to the economy and there will have to be more sustainable growth and expansion achieved through growth in consumer spending and business investment.
There are signs recently that banks are loosening up on their lending policies. However not sufficiently enough for the borrowers who wish to refinance and take advantage of the lowest mortgage rate on record since the 1970′s.According to mortgage bankers borrowers are still not able to obtain these loans due to strict underwriting requirements and of course the job loss situation.
This all leads to frustration in the market and from our point of view is demonstrating stark inconsistencies in policies and resulting in lack of consumer confidence which is one of the main elements of the economic growth process.
