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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: ahhaha who wrote (24855)10/27/2004 3:54:46 PM
From: Elroy JetsonRead Replies (1) | Respond to of 306849
 
You're right. The Fed doesn't inject money into Fannie Mae, they simply buy Fannie Mae bonds - which supports their value and increases Fannie Mae "equity".

Even more elegant is to have the central bank of Japan or China buy Fannie Mae bond and have the Fed buy the Yen or Renminbi.



To: ahhaha who wrote (24855)10/27/2004 10:10:34 PM
From: Mike JohnstonRespond to of 306849
 
Yes, you are correct:
- The Fed doesn't inject funds into FNM.
- The Fed did not bail out JP Morgan
- The Fed did not bail out LTCM
- The Fed doesn't print money to buy bonds.
- We have very low inflation and rapidly rising house prices.
- Tomorrow will be very hot with temperatures below freezing
- Rising oil prices are deflationary.
- Rising real estate prices create wealth in the economy.