Money and Finance
- The Death Of The Dollar? – By Rob Arnott
To no one’s surprise, the Fed announced that it will replace the expiring “Operation Twist”—in which it was selling $45 billion of short maturity treasuries and buying a like amount of long maturity treasuries every month—with continued purchases...
- Say Goodbye To Fannie And Freddie - By William Poole
Found via The Big Picture. THE Federal National Mortgage Association — known as Fannie Mae — and the Federal Home Loan Mortgage Corporation — Freddie Mac — were poorly structured from the time, 40 years ago, when they were set up as so-called...
- Hussman Weekly Market Comment: The Federal Reserve's Exit Strategy: Unlegislated Bailout Of Fannie And Freddie
If one is alert, it is evident that the Federal Reserve and the U.S. Treasury have disposed of the need for Congressional approval, and have engineered a de facto bailout of Fannie Mae and Freddie Mac, at public expense.Below is a chart of the composition...
- Wsj: First, Let's Stabilize Home Prices - By R. Glenn Hubbard And Chris Mayer
We are in a vicious cycle: falling housing values cause losses on securities, which reduce bank capital, thereby tightening lending and causing house prices to fall further. The cycle has spread beyond housing, but housing is the place to fix it. Housing...
- What To Make Of Qe3
I'm very annoyed that Bernanke announced QE3 today. The plan is to purchase $40 Billion of mortgage-backed securities each month until they are satisfied that the economy, specifically unemployment, is righted. He also announced today that interest...
Money and Finance
Bob Rodriguez Commentary: ALL IN!
The Fed initiated QE3 today by announcing its plan to buy $40 billion per month of agency mortgage-backed securities, finishing Operation Twist by year end and keeping the federal funds rate at 0 to ¼ percent through at least mid-2015. Additionally, “If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.” With this statement, the Fed has gone “ALL IN!”
- The Death Of The Dollar? – By Rob Arnott
To no one’s surprise, the Fed announced that it will replace the expiring “Operation Twist”—in which it was selling $45 billion of short maturity treasuries and buying a like amount of long maturity treasuries every month—with continued purchases...
- Say Goodbye To Fannie And Freddie - By William Poole
Found via The Big Picture. THE Federal National Mortgage Association — known as Fannie Mae — and the Federal Home Loan Mortgage Corporation — Freddie Mac — were poorly structured from the time, 40 years ago, when they were set up as so-called...
- Hussman Weekly Market Comment: The Federal Reserve's Exit Strategy: Unlegislated Bailout Of Fannie And Freddie
If one is alert, it is evident that the Federal Reserve and the U.S. Treasury have disposed of the need for Congressional approval, and have engineered a de facto bailout of Fannie Mae and Freddie Mac, at public expense.Below is a chart of the composition...
- Wsj: First, Let's Stabilize Home Prices - By R. Glenn Hubbard And Chris Mayer
We are in a vicious cycle: falling housing values cause losses on securities, which reduce bank capital, thereby tightening lending and causing house prices to fall further. The cycle has spread beyond housing, but housing is the place to fix it. Housing...
- What To Make Of Qe3
I'm very annoyed that Bernanke announced QE3 today. The plan is to purchase $40 Billion of mortgage-backed securities each month until they are satisfied that the economy, specifically unemployment, is righted. He also announced today that interest...