President Bush' Economic Stimulus Package

Filed in archive Op-Ed on January 28, 2008

Stephen Horan, CFA, head of private wealth for CFA Institute, commented today on the economic stimulus package proposed by President Bush and the U.S. House of Representatives.

"What's interesting about this proposal is the yet-to-be-determined impact it will have on the soft housing market and the durable goods sector," said Horan. "The more than $200,000 increase in the jumbo mortgage limits is significant because it might provide some refinancing opportunities to homeowners who are finding it difficult to pay their existing mortgage. Banks, knowing that they can possibly repackage these jumbo loans and sell them back to Fannie Mae or Freddie Mac, might now be willing to refinance at lower rates."

Horan added that "when it comes to the impact consumer spending will have on sector performance we may possibly see improvements in the consumer non-durable sectors, such as retail. However, time will tell how this plays out."