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


To: John Vosilla who wrote (34634)6/29/2005 1:43:04 PM
From: Mike JohnstonRead Replies (1) | Respond to of 306849
 
What happens if the Fed monetizes the debt to prevent rates from rising ? Bernanke said they might do it. Then we end up in a much more dire situation than Argentina was.
Instead of 50% decline we will have: first a 200% rise and then a 90% decline (so that everybody will be wiped out, those that expect prices to go down and those who expect them to go up)

For some reason the Fed is already buying agency debt.