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Strategies & Market Trends : 50% Gains Investing

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To: Paul Kern who wrote (71528)1/21/2009 3:27:09 PM
From: Keith FeralRead Replies (1) of 118717
 
Much less risk to buy the short term debt and increase the velocity of money to make more money available to buy MBS from the banks. Looks to me like the FED is starting to fill the void left behind from the securitization market that all but disappeared over the past couple of years.

Let the TARP money go after all the long term maturity paper that has much more risk. The stuff they are buying with maturities in 2011 would essentially have no risk since the mortgages are almost paid off to begin with. No one is going to default on a loan with only 2 years to maturity. Those would have been homes purchased in 1981.
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