Live and learn, Stoozing

Well, we all woke up to a increasingly troubled financial market and as Trace Adkins pointed out on Bill Maher last week, “even though we’ve all seen it coming, it still seems like it just blew up all of a sudden.”  So today the fed announced another interest rate cut down to 3.25% which should (they hope) affect the economy in a stimulating way but meanwhile, the way the stock market is careening all over the place doesn’t bode well for any instant changes.  However, T and I are Stoozing about 50K and today we have to think about how this will affect our ability to refi.  We have 5 props all mortgaged at between 6% and 6.825% and fixed for 30 years.  But refis are now coming available at 5.25 and even lower for 15 yr loans.  We have no debt aside from the mortgages and the three Stoozes and our FICO is at 760 and holding.  Still, we are a little doubtful about the viability of a refi once the lender looks at the newest hits on our credit cards.  One thing that I think at this point works for us is time.  We can pull and pay the Stoozes off quite quickly.  Then if the credit environment stays the same as now, with our solid employment record and long list of assets we should be able to take advantage.

On the other hand, on a less personal note.  What good will all this financial maneuvering do if the whole economy tanks?  We have savings and emergency funds but they are in banks.  And what I’ve been discovering lately is that the domino effect that most of us used to laugh at back in the day when the war hawks used to use it to describe why they needed to keep bombing Vietnam is actually a good way to look at the financial trouble we are all in.  The whole thing is one big series of Stoozes and it all relies on the original concept of keeping the principal stable and liquid.  I am not sure but it may well be that this has gotten so far out of hand that countries, banks, lenders, investors and the people that run them may not even know anymore who owes who what.

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