Mike Larson
The Federal Reserve has done it now. In poker terms, it’s gone “all in.”
Specifically, the Fed said this week that it will ramp up its purchases of Fannie Mae and Freddie Mac Mortgage Backed Securities (MBS) from $500 billion to a whopping $1.25 TRILLION in the coming months. The Fed is also going to double its purchases of Fannie Mae, Freddie Mac, and Federal Home Loan Bank bonds to $200 billion from $100 billion.
And for the icing on the cake …
The Fed will buy as much as $300 billion in longer-term U.S. Treasury securities. It’s going to focus on Treasuries with maturities between two and ten years, and make purchases two or three times a week.
Read on...
Peacenik sees these latest moves as more desperation from Obama. Obama desperately wants to re-inflate the housing bubble, or any bubble for that matter. Obama still can't accept that the status quo will never return. Peacenik doesn't offer financial advice other than to bury cash in your back yard. In this post Mike offers some insights on re-financing or buying a house. Meanwhile it is Friday and the bank death watch continues. (Banks die on Fridays) Do you have enough cash to get through the weekend?
Specifically, the Fed said this week that it will ramp up its purchases of Fannie Mae and Freddie Mac Mortgage Backed Securities (MBS) from $500 billion to a whopping $1.25 TRILLION in the coming months. The Fed is also going to double its purchases of Fannie Mae, Freddie Mac, and Federal Home Loan Bank bonds to $200 billion from $100 billion.
And for the icing on the cake …
The Fed will buy as much as $300 billion in longer-term U.S. Treasury securities. It’s going to focus on Treasuries with maturities between two and ten years, and make purchases two or three times a week.
Read on...
Peacenik sees these latest moves as more desperation from Obama. Obama desperately wants to re-inflate the housing bubble, or any bubble for that matter. Obama still can't accept that the status quo will never return. Peacenik doesn't offer financial advice other than to bury cash in your back yard. In this post Mike offers some insights on re-financing or buying a house. Meanwhile it is Friday and the bank death watch continues. (Banks die on Fridays) Do you have enough cash to get through the weekend?
