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May re-enter MBS market?…..

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Millions of broke dicks are not…can not,  pay their mortgages. I wonder how these guys figure we can ignore trillions in foreclosures. Someone has to buy up these new bad loans that are backed by some banker’s crooked imagination. I hope they can get away with it but I’m a tad skeptical

CORRECTED – Fed may re-enter MBS market later in 2010 – Market News | Reuters

NEW YORK, Jan 5 (Reuters) – The Federal Reserve is discussing re-entering the mortgage-backed securities market later this year if its buying power is needed to hold down interest rates, Market News said on Tuesday in a story citing Fed officials.

The $5 trillion agency mortgage-backed securities market may weaken when last year’s biggest buyer, the Federal Reserve, ends its $1.25 trillion agency MBS purchasing program at the end of the first quarter of 2010.

Fed officials, however, “are prepared to contemplate changes if need be, depending on conditions in the economy, housing finance and in financial markets more broadly,” Market News said in a story written by Steven Beckner.

“Among the options that has been discussed, say people in a position to know, is doing additional MBS purchases.”

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Written by mrcauser

January 6, 2010 at 8:52 pm

Posted in Uncategorized

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