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

To: patron_anejo_por_favor who wrote (234265)	12/24/2009 5:21:16 PM
From: James Hutton	Respond to of 306849

I wonder if they get less if they don't solve Fannie and Freddie's problems? Given that the Fed is trying to solve their problems by buying up Agency debt, I'm not sure how the head FNM/FRE pencil pushers are going to fix their problems. CR says (I think) the Fed is keeping mortgage rates artificially suppressed by 40 or 50 bps. So they've spent how many months spending a trillion bucks to keep mortgage rates down by 1/2 a point, and the bond market has jacked up long rates by 3/4 of a point since early October (also coincidentally when the Fed got out of buying the long end). I'm not an economist, but the Fed seems to be going to extraordinary efforts to distort the market with relatively small effect (especially in the long term). Just rambling.