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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Think4Yourself who wrote (109149)3/11/2008 7:30:32 PM
From: patron_anejo_por_favorRead Replies (2) of 306849
 
>>The fed is addressing the liquidity problem without helping the gamblers or the mucked up companies<<

You mean Citigroup, COF, MBI, WM, MER, BAC, WB haven't been gambling? ROTFL...

This is the camel's nose of the Fed buying MBS's outright under the tent of monetary policy. It has a huge downside, which will be seen when they start to "expand the option" as has been bandied around. At that point it will be MORE expansionary than a simple FF cut, with resultant hyperinflation (to say nothing of creating a whole new class of zombie financial companies a la Japan). It's simply another way to avoid market clearing at any cost.
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