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» Changing of the Guard at Fed Palace

Posted on 1/29/2006

For the first time in eighteen years, the Fed will have a new leader. Al Greenspan will step down as Chairman and Benjamin Bernanke will take the helm. Perhaps no other person in government is as important to the US investor as the Chairman of the Fed. He sets the rates by which real estate mortgages are set nationwide. Avatar Financial Group sets loan rates against the Prime Rate. Most Avatar loans fund at Prime + 6%; as they float with the prime rate, we (and, no doubt, our borrowers) keep a pretty firm eye on the Fed Chairman’s whims concerning the prime rate.

Ben Benanke becomes Chairman on Tuesday, January 31, 2006. Stay tuned as we learn more about ‘the boss’.

 

Posted in Commercial Real Estate News