Pliny Posted June 2, 2013 Report Share 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 Link to comment Share on other sites More sharing options...
GostHacked Posted June 2, 2013 Report Share 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 Link to comment Share on other sites More sharing options...
Pliny Posted July 12, 2013 Author Report Share 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 Link to comment Share on other sites More sharing options...
BC_chick Posted August 6, 2013 Report Share Posted August 6, 2013 The mortgages are 'good' so long as interest rates remain at 3%. This is not going to end pretty. Quote Link to comment Share on other sites More sharing options...
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