MyVegasRealEstateBlog

The long-running saga of the Fannie Mae / Freddie Mac meltdown has been playing across our screens like some far-fetched soap opera. But if we divorce ourselves from all the hype and drama for a second, what do we really see in the bigger picture?

It’s a bit like the “glass half full or glass half empty” question. If you’d have asked most people a few months ago, to predict the outcome of what has happened, they’d have probably painted an “end of days” scenario, with the world as we know it, self-imploding!

But what actually happened can really only be cause for celebration. As a nation, the United States of America has yet again proved that when the chips are really down, Uncle Sam will always come to the rescue.

Why do we always panic when things don’t always go according to plan? As Franklin Roosevelt famously said “we have nothing to fear but fear itself”. In spite of all the doomsday predictions, the fact is that world markets have mainly rebounded on the news that the Fed has stepped up to the plate, and purchased Fannie and Freddie outright, mortgage rates have eased, and financial experts have breathed a collected sigh of relief. And guess what? The world continues to spin, and we all get on with our lives.

So what lesson can we learn from this story? That seemingly impossible situations have a habit of resolving themselves? For sure! That today’s bad news is replaced by tomorrow’s new spin? Absolutely! But perhaps the most important lesson we can take from all of this, is that when considering purchasing or selling a home, we should always consider the fundamentals, and try not to get too caught up in what we see and hear in the media.