Pliny Posted June 2, 2013 Report Posted June 2, 2013 The Federal Reserve is buying up $40 billion worth of mortgage backed securities to drive the housing market. Familiar scenario? http://www.reuters.com/article/2013/05/30/us-markets-mortgages-fed-idUSBRE94T0WZ20130530 Quote I want to be in the class that ensures the classless society remains classless.
GostHacked Posted June 2, 2013 Report Posted June 2, 2013 This is part of that Quantitative Easing : Infinity. The US fed said they were pumping a few billion into the economy every month until further notice. So not exactly unexpected that they might try this again. Hang on! Quote
Pliny Posted July 12, 2013 Author Report Posted July 12, 2013 I'm surprised there hasn't been more comment on this. After all, it could contribute to another boom in MBS creation by Wall Street. These mortgages are obviously good quality and the MBS's well above junk status if they are being bought up by the Fed? Investors should find that encouraging and be diving in there. For some reason they are being cautious or maybe |Wall Street is restrained by new regulations from things like the Dodd-Frank bill. Quote I want to be in the class that ensures the classless society remains classless.
BC_chick Posted August 6, 2013 Report Posted August 6, 2013 The mortgages are 'good' so long as interest rates remain at 3%. This is not going to end pretty. Quote It's kind of the worst thing that any humans could be doing at this time in human history. Other than that, it's fine." Bill Nye on Alberta Oil Sands
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