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

To: Hawkmoon who wrote (106293)	2/22/2008 5:31:18 PM
From: CalculatedRisk	Read Replies (2) \| Respond to of 306849

You ask: Q: True or False.. Excess FICA receipts actually increase the national debt? A: False. Excess SS Insurance receipts are borrowed by the General Fund, but if these funds weren't available, the General Fund would have to borrow the same exact amount elsewhere. This has ZERO impact on the National Debt. Q: True or False? A 10 year T-Bill bond yield that is trading before the Federal Funds rate would be yield even less were the budget deficit to be erased. A: ROFLOL. Could you rephrase the question in English. Q: True or False? A non-existent Gov't Debt would nullify the Federal Reserves ability to inject, or withdraw liquidity from the money supply? A: False. The Fed could still inject / withdraw liquidity. Q: True or False? As the 10 year yield declines, investors are attracted to other higher yielding monetary instruments, including 30 year government guaranteed mortgages. A: It depends on the spread and perceived risk. Q: True or False? As this investor money becomes available to mortgage bankers, it increases the motivation for these mortgage brokers to issue risky loans in the face of ready supplies of interested capital. A: Talk about a leading question. ROFLOL. Hope this helped.