/dev/null Posted November 29, 2011 Share Posted November 29, 2011 http://www.bloomberg.com/news/2011-11-27/bond-dealers-see-fed-buying-545-billion-of-home-loan-debt-in-third-easing.html All Glory to The Benbernank Link to comment Share on other sites More sharing options...
meazza Posted November 29, 2011 Share Posted November 29, 2011 And if they don't will you shut the !@#$ up? Link to comment Share on other sites More sharing options...
B-Large Posted November 29, 2011 Share Posted November 29, 2011 http://www.bloomberg.com/news/2011-11-27/bond-dealers-see-fed-buying-545-billion-of-home-loan-debt-in-third-easing.html All Glory to The Benbernank Ever get the feeling we are convinced we can buy/finance our way out of anything, even the relatively stable laws of economics? Link to comment Share on other sites More sharing options...
DC Tom Posted November 29, 2011 Share Posted November 29, 2011 Ever get the feeling we are convinced we can buy/finance our way out of anything, even the relatively stable laws of economics? Lots of people still believe in perpetual motion machines. Link to comment Share on other sites More sharing options...
/dev/null Posted November 30, 2011 Author Share Posted November 30, 2011 And if they don't will you shut the !@#$ up? Don't you have quantum physics thesis to write or something? Link to comment Share on other sites More sharing options...
TPS Posted November 30, 2011 Share Posted November 30, 2011 So the Fed buys mortgages, which takes the banks off the hook, as home prices are still declining and defaults still rising; and banks get reserves that the Fed will pay interest on. I guess I'll refinance when the 30-year hits 3%... Btw, it's been 3 years and a couple trillion of so-called money printing, so where's that big inflation? Link to comment Share on other sites More sharing options...
Dave_In_Norfolk Posted November 30, 2011 Share Posted November 30, 2011 Btw, it's been 3 years and a couple trillion of so-called money printing, so where's that big inflation? The world wonders Link to comment Share on other sites More sharing options...
meazza Posted November 30, 2011 Share Posted November 30, 2011 Don't you have quantum physics thesis to write or something? Once again, if they don't will you shut the !@#$ up? Link to comment Share on other sites More sharing options...
DC Tom Posted November 30, 2011 Share Posted November 30, 2011 So the Fed buys mortgages, which takes the banks off the hook, So after four years of dicking around, some genius decides "Hey, let's try the original bailout plan!" Link to comment Share on other sites More sharing options...
TPS Posted November 30, 2011 Share Posted November 30, 2011 So after four years of dicking around, some genius decides "Hey, let's try the original bailout plan--again!" fixed. Link to comment Share on other sites More sharing options...
GG Posted November 30, 2011 Share Posted November 30, 2011 So after four years of dicking around, some genius decides "Hey, let's try the original bailout plan!" All window dressing until housing stabilizes. Link to comment Share on other sites More sharing options...
DC Tom Posted November 30, 2011 Share Posted November 30, 2011 All window dressing until housing stabilizes. It's starting to. It's still not good - home prices are falling, and will continue to, and there'll be a glut of supply for a while. But foreclosures and short sales are starting to go smoother, so the market is finally starting to adjust to the new reality of supply and pricing. Prices won't bottom out for a while (3Q 2012 if we're lucky, more likely early 2013), but the market is at least stable and not completely "no one buying, selling, or lending" !@#$ed-up. Link to comment Share on other sites More sharing options...
meazza Posted November 30, 2011 Share Posted November 30, 2011 It's starting to. It's still not good - home prices are falling, and will continue to, and there'll be a glut of supply for a while. But foreclosures and short sales are starting to go smoother, so the market is finally starting to adjust to the new reality of supply and pricing. Prices won't bottom out for a while (3Q 2012 if we're lucky, more likely early 2013), but the market is at least stable and not completely "no one buying, selling, or lending" !@#$ed-up. There are quite a few brokers here that are advertising on getting Canadians to buy second homes in the US such as LA/Miami/Vegas. Probably not a huge impact but should help stir some demand for housing. The drawback is that you'll have more Canadians around you. Link to comment Share on other sites More sharing options...
TPS Posted November 30, 2011 Share Posted November 30, 2011 It's starting to. It's still not good - home prices are falling, and will continue to, and there'll be a glut of supply for a while. But foreclosures and short sales are starting to go smoother, so the market is finally starting to adjust to the new reality of supply and pricing. Prices won't bottom out for a while (3Q 2012 if we're lucky, more likely early 2013), but the market is at least stable and not completely "no one buying, selling, or lending" !@#$ed-up. Why do you think the Fed is going to buy mortgages? It's prevention by preemption this time. Link to comment Share on other sites More sharing options...
Keukasmallies Posted November 30, 2011 Share Posted November 30, 2011 and when the borrowers default on their loans, we already have mechanisms in place to mulligan the bail-outs! What a wonderful life. Link to comment Share on other sites More sharing options...
Clip Smith Posted November 30, 2011 Share Posted November 30, 2011 (edited) So the Fed buys mortgages, which takes the banks off the hook, as home prices are still declining and defaults still rising; and banks get reserves that the Fed will pay interest on. I guess I'll refinance when the 30-year hits 3%... Btw, it's been 3 years and a couple trillion of so-called money printing, so where's that big inflation? You said it yourself, savers get punished. It costs more to have a modest savings account open than you receive in interest. Have you gone to the grocery store lately? Real wages are down over the past decade. The stock market is down over the past decade. Housing is down, yet Potato Chips cost $8 a pound and unless you go out to the Taco bell 99 cent menu, you get punished. I think you may not respect the idea of hyperinflation which will hit when bailouts reach critical mass and people denounce all currency. They have been doing it fairly orderly now for 3 years, but as you see, the US is on the hook for the rest of the world. If you peg the dollar to gold, there is inflation creeping towards 20% since this mess started. I think that is a fairly conservative estimate to use going forward. Celebrating the modest rise you have seen so far given the macro situation is like Terry Schiavo's doctor celebrating keeping her alive. It's all artificial, and if you can tell me how to make $15 trillion in debt disappear without going into a depression or letting real goods rise at this point....I want you in Washington. Edited November 30, 2011 by Clip Smith Link to comment Share on other sites More sharing options...
DC Tom Posted November 30, 2011 Share Posted November 30, 2011 Why do you think the Fed is going to buy mortgages? It's prevention by preemption this time. Mortgage securities. Not quite the same. The homeowner would arguably be better off if the government were buying whole loans. And the housing market's going to turn around on its own time, irrespective of the Fed's or government's interference. I've been saying since '07 that this wouldn't get cleared up until early 2012 - I changed that estimation to early 2013 solely on the lenders' incompetent handling of foreclosures. The Fed purchases, targeted for mid-2012 as they seem, will allow the government to nicely take credit for what I expect will happen anyway. Link to comment Share on other sites More sharing options...
B-Large Posted November 30, 2011 Share Posted November 30, 2011 Lots of people still believe in perpetual motion machines. I asked for one of those for X-mas.... my birthday, I think I am going Cold Fusion energy creator Link to comment Share on other sites More sharing options...
/dev/null Posted November 30, 2011 Author Share Posted November 30, 2011 Once again, if they don't will you shut the !@#$ up? Sure But if they do, you have to change your avatar to a pink background with white lettering: #1 Gay Porn Fan Link to comment Share on other sites More sharing options...
TPS Posted November 30, 2011 Share Posted November 30, 2011 Mortgage securities. Not quite the same. The homeowner would arguably be better off if the government were buying whole loans. And the housing market's going to turn around on its own time, irrespective of the Fed's or government's interference. I've been saying since '07 that this wouldn't get cleared up until early 2012 - I changed that estimation to early 2013 solely on the lenders' incompetent handling of foreclosures. The Fed purchases, targeted for mid-2012 as they seem, will allow the government to nicely take credit for what I expect will happen anyway. Who said it was to help homeowners? Take the marginal loans off the books now...in exchange for interest earning risk-free reserves. Link to comment Share on other sites More sharing options...
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