Bad Credit Loan Mortgage Pennsylvania

Managing the divide between east and west may lead RBA in a new ...

IMPLICIT in the Reserve Bank's decision to lift official interest rates, for the second time in four months, is an admission of failure. It would, however, be a hard taskmaster who condemned the Reserve Bank for not realising earlier that inflationary pressures in the economy were surging.

"Overall, the board's assessment, based on the gradual increase in underlying inflation this year, and the wider background of above-average global growth and strong domestic demand, was that underlying inflation in the period ahead was likely to exceed previous forecasts," the Reserve Bank said.

The bank has under-estimated the resilience of domestic demand and the impacts of the China-inspired commodity boom and the parallel increase in oil prices on inflation. Its last increase, in May, had no discernible effect on consumer behaviour.

Wachovia names leadership for West

In its planned combination with a California thrift, Wachovia Corp.'s executives will run banking, while a Golden West Financial Corp. official will lead the mortgage business.

The Charlotte-based bank on Tuesday started filling out the roster of upper managers who will head the company's westward expansion.

The moves are the latest step in fleshing out a $25.5 billion acquisition expected to close as early as October.

On the retail banking side, Pete Jones, head of Dallas operations and a former N.C. executive, will lead the bank in California, Arizona and Nevada, based in Oakland, Calif.

Wachovia's current head of southern California, Frank Newman, will serve as his chief operating officer.

Guy Bodine, head of Texas, will lead a region composed of Texas, Colorado, Kansas and Illinois, based in Dallas.

Fed pauses, consumers exhale

The Federal Reserve's decision not to raise rates for the first time in two years should give both consumers and businesses some breathing room.

If you have a home equity line of credit, what the Fed didn't do Tuesday is really good news.

"That's the most positive news. Everybody with a home equity line of credit right now is cheering because their rate did not increase," said Cory Reid, president of Emeryville-based Fountainhead Mortgage and an officer with

the California Association of Mortgage Brokers.

"The most immediate impact will be felt by people who have a home equity line of credit. The reason for that is that every time the Fed moves the rate, it immediately impacts the prime rate upon which their home equity lines are based," he said.

The prime rate has more than doubled from 4 percent in June 2004 to 8.25 percent in July.

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