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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 (234284)12/24/2009 10:45:02 PM
From: patron_anejo_por_favorRespond to of 306849
 
>>What happens if spreads narrow from their current record? I assume it takes longer for Agencies to earn their way out of the abyss?<<

What happens if spreads invert again? Then FNM, FRE and the FED all end up like Mr. Creosote......It won't take 10 years, either.....if the Fed is unable to monetize the debt (i.e, the debt created results in a dollar tank-a-roo because no one will buy it), then that's the end result.

Sorry Ben....Dr. Frankenstein didn't see it coming with HIS monster, either. Unintended consequences are a beeyotch, just ask Soylent Greenspan.