Newsweek, Feb. 1, 2010, p. 10.
The Fed's Buying Spree
Over the last year, the Fed has bought $900 billion of mortgages, giving a nice kick to the housing sector. It plans to stop in March. Is that a good or bad idea?
Lawrence Yun, chief economist, National Association of Realtors: Bad. ...
Karl Case, cofounder of Case-Shiller Index: Good. ...
Our Verdict: At some point, it's time to take off the Band-Aid. The Fed has done all it can to prop up housing, and this seems the right support to remove. By March the Fed will own $1 trillion of mortgages, including 70 percent of those issued by Fannie and Freddie. Enough is enough.
Originally posted by zeeblebotTea Parties will become more "festive".
there goes telerion's house value!
and theories of recovery ... whoosh! ...
what happens when the govt has to turn off the outgoing teats?
All those people who want Big Gummint to get out of the way will become angry after Big Gummint does precisely that.
Almost anybody else and we could have an interesting conversation on the Fed's balance sheet, quantitative easing, and the risks and rewards of their recent deviation from orthodox monetary instruments. Unfortunately, you've continually proven yourself to be a waste of any reasonable person's time so I'll let it go.
Originally posted by zeeblebotStopping the vicious circle of default and house price falls. The question may be asked whether now is the right moment to let go of the temporary crutches, but the theory that the recovery is in motion is consistent with this being a good moment to start letting go.
expound
Originally posted by zeeblebotIt's evident from the fact that you think that the policy has something to say about "theories of recovery". But I don't expect you to understand what your comments entail.
why would you think that i "completely missed the point of the policy"? how do you get that from the above?
Originally posted by zeeblebotHere:
where did i say the POLICY has something to say about "theories of recovery"?
and theories of recovery ... whoosh! ...
what happens when the govt has to turn off the outgoing teats?
But again, I don't expect you to understand your own posts considering the amount of copying and pasting that are usually involved.