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...will probably remain weak for several years--meaning there isn't much cause to worry that stimulus would overheat an already strong recovery. Meanwhile, the Fed, which normally stimulates the economy via the financial system, is having trouble doing so because the financial system is broken. And the usual concern that government will crowd out private borrowers isn't an issue. "The government has a window in which it can borrow very aggressively," says Mark Zandi, chief economist at Moody's Economy.com "because no one else is borrowing...

Author: /time Magazine | Title: Will Washington's Stimulus Plan Work? | 11/13/2008 | See Source »

...details of how, exactly, monthly payments will be lowered has raised concern in certain quarters. In a news conference explaining the program, James Lockhart, who runs the agency that oversees Fannie and Freddie, highlighted three tacks: reducing interest rates, extending the length of loans and, in some cases, deferring payment on part of the principal. There is a big difference, though, between permanently reducing an interest rate and doing it temporarily. And the new program doesn't forgive principal, only defers it, which may not go very far at a time when some 18% of mortgage holders owe more...

Author: /time Magazine | Title: Fannie and Freddie Offer New Plan to Help Homeowners | 11/12/2008 | See Source »

...housing and broader financial crisis. In order to target the most at-risk borrowers, the new program only kicks in once homeowners have missed three mortgage payments. Even though the program intends to exclude people who stop making payments just to get a modification, there is a concern that homeowners will be incentivized to do so. "They're saying to everyone out there, don't make your mortgage payment, be 90 days late, and then we'll help you," says Bruce Marks, CEO of the Neighborhood Assistance Corporate of America, a non-profit that works with servicers to modify mortgages...

Author: /time Magazine | Title: Fannie and Freddie Offer New Plan to Help Homeowners | 11/12/2008 | See Source »

...Crimson boasts an imposing balance of rookies and veterans, with five grapplers ranked in the EIWA and three in the national top 25. Although junior co-captain J.P O’Connor insists that the grapplers have little concern for preseason accolades, the message is clear that Harvard has put the wrestling world on notice...

Author: By Max N. Brondfield, CRIMSON STAFF WRITER | Title: Harvard Eager To Battle in Season Opener | 11/12/2008 | See Source »

...economy worsens, fundraising has become, and is going to be, an increasingly difficult challenge. Alumni have voiced much concern about funding financial aid: their wish to establish a “rainy day fund” for scholarship holders covering them in case of crisis, is being taken seriously. Unfortunately, no one knows how long the rain will last...

Author: By Mark J. Chiusano, CONTRIBUTING WRITER | Title: Spare Change | 11/12/2008 | See Source »

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