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

To: Les H who wrote (109171)	3/11/2008 9:12:31 PM
From: Les H	Read Replies (2) \| Respond to of 306849

Permanently temporary It is a ground-breaking move for the Fed to accept mortgage collateral, even if the debt is theoretically 'AAA-grade' debt. The Fed is not allowed to buy mortgage bonds outright, but it can achieve a similar effect by letting banks roll over collateral indefinitely. The European Central Bank is already doing this, shielding Dutch, Spanish, German, and some British banks from the full impact of the credit crunch. Fed takes boldest action since the Depression to rescue US mortgage industry telegraph.co.uk