Interest rate dilemma

[Paulie]

What about all the bad mortgage backed securities that the FED is still holding on to. Aren't they just propping up the housing market still, and if so we haven't seen the bottom yet.

That's one of my worries. When it comes time for the Fed to sell assets and reduce the money supply to slow inflation, who's going to buy that junk?

 

[Middleoftheroad]

What about all the bad mortgage backed securities that the FED is still holding on to. Aren't they just propping up the housing market still, and if so we haven't seen the bottom yet.

That's one of my worries. When it comes time for the Fed to sell assets and reduce the money supply to slow inflation, who's going to buy that junk?

Fannie Mae and Freddie Mac, then we bail them out again. Its a cycle you see...

 

[ThinkCritically]

What about all the bad mortgage backed securities that the FED is still holding on to. Aren't they just propping up the housing market still, and if so we haven't seen the bottom yet.

That's one of my worries. When it comes time for the Fed to sell assets and reduce the money supply to slow inflation, who's going to buy that junk?

Fannie Mae and Freddie Mac, then we bail them out again. Its a cycle you see...

Yeah seriously, the whole thing that brought down the house of cards is still on the books, and people talk about a recovery with over a trillion dollars (i think) of mortgages on the FED's balance sheet.....sigh....