Dennis' Mortgage Blog

A judge orders a man who was arrested held without bail and you benefit.  How does that work?

If the man held without being able to post bond is the head of the International Monetary Fund (IMF) that is how.  This past weekend Dominique Strauss-Kahn was pulled off an Air France plane that had already pulled away from the gate and arrested on several charges of sexual assault. 

The IMF has 187 countries as members and advises lends to members of the organization.  The IMF's most prominent loans lately have been to European nations trying to avoid complete financial collapse.  As I wrote about last week (Financial Revolution) Greece, Spain, Ireland and other European countries are counting on bailouts from other members of the European Union and the IMF to avoid total economic collapse.  Having the head of the IMF doing the perp walk in New York City on charges of sexual assault in an exclusive hotel in Manhattan does not lend confidence to the controls at the IMF or the future course of the organization.

Strauss-Kahn may not be singularly in charge of the bailouts, and certainly they can proceed without him, however his arrest and the circumstances are tremendous blow to the confidence and trust in the IMF and adds credence to critiques within member nations who would like to see their countries pull out of the IMF, or greatly reduce their contributions.  Already in the U.S. media criticism has emerged around the scene of the alleged sexual assault, a $3000 per night (yes per night, check out by 11:00 a.m.) at the Sofitel Hotel (I did a quick search to see about Leslie and I staying Friday and Saturday night and the economy room of 300 square feet is $450 per night, but we get a marble bath and an iron). 

Already shaky with investors, the news of the arrest and possible political ramifications around the globe to the IMF caused investors to look where they always look when their is uncertainty: U.S. bonds.  As a result mortgages saw good action today as investors bid up Mortgage Backed Securities and rates saw a slight improvement from Friday's close.

Frenchman, sex, continental political scandals, luxury hotels, it reads like a novel but sadly for European economies the story is not fiction.

Mortgage rates continue to remain low for the time being.  Call or email Dennis today to determine your purchasing power for a new home loan or monthly savings from a refinance.  Direct dial 562-472-1118