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

To: James Hutton who wrote (184569)	2/18/2009 12:33:31 AM
From: The Reaper	Read Replies (1) \| Respond to of 306849

So what would that do to the value of mortgage-backed securities that everyone has been piling into lately? Wouldn't that scare some of those people out of that market and back into treasuries? I would think that the MBS market would benefit from the govt. subsidizing the payments. The toxic MBS's would rise in quality and investors who have been buying distressed MBS's would probably have locked in a pretty good yield. In that environment, the only entity buying Treasury paper would be the Fed.