The Fed’s second interest rate cut in just over a week really confused me. Instead of being merely aggressive, it appeared a bit desperate. Perhaps, the national economy is faring much worse than I had believed. The problem for home owners and real estate investors is that our perspective is often local. Easy to tell how we are doing, but difficult to see clearly how others are doing. So long as we have a roof over our heads and a steady job, any recession does not seem too bad.

If you live in an area tha has not been affected by the sub-prime crises, you might be thinking that your area is different. However, it is difficult living on an island and eventually what happens to others may also happen to us. Make sure you have sufficient savings to ride out this storm.