On the domestic front, everyone (not focused on O.J. again) is talking about the Federal Reserve cutting interest rates to 4.75% yesterday. This certainly comes as welcome news to investors, and will offer some relief to homeowners with variable rate mortgages.

I am concerned, however, that while this certainly offers short term benefits, in the long term, we may end up seeing an increase in inflation as the dollar continues to drop and food and energy prices continue to rise. I admit, it must’ve been a tough call for the Fed: either make an effort to jump start investments and clean up the mess in the credit market, or fight inflation. We’ll see how it works out…

Meanwhile, congress has also acted to aid struggling homeowners. The Expanding American Homeownership Act of 2007 (H.R.1852) could enable as many as 200,000 low and middle income homeowners with variable rate mortgages who have fell behind in their payments to qualify for refinancing through the Federal Housing Administration.

If the Fed is going to help bail out Wall Street’s bad investments in the subprime market, someone needs to make sure that working class Americans are taken care of as well. H.R. 1852 passed through the house 348-72, and if you want to know how your congressman voted, you can check that out here.  Connie Mack  IV voted against it.