Money and Finance
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 rates will stay near zero until mid-2015. The hope is to stabilize and hopefully spur the housing recovery.
The American people haven't been purchasing houses because they either don't have jobs, don't work enough hours or have no idea what the future of their job is. It's not because mortgage rates are too high, they're at all-time lows. What I see as the reason for doing this is to further clean up the banks' balance sheets by taking MBS off their books and hopefully spurring further lending by the banks with a pocket full of cash and low interest rates.
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- Even The Rich Can't Get Credit These Days
All of the talk today when it comes to the economy is the "frozen" credit market. $350,000,000,000 of money from our taxes hasn't seemingly done anything to slow down the foreclosure rates as U.S. banks are simply using the free government money to...
- Richard Fisher Interview Excerpts
Via ValueWalk: On recent reports from the San Francisco Federal Reserve that suggest bond buying and money printing has a very minimal effect on the GDP: “I argued that when I argued against this program so I am happy to see and they have one...
- 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,...
- Gundlach Steers Clear Of Mortgage Reits
Investors should avoid real estate investment trusts that buy U.S. mortgage-backed securities because they’ll continue to cut dividends as homeowners refinance mortgages at lower rates, said DoubleLine Capital LP’s Jeffrey Gundlach. “I expect further...
- John Mauldin's Outside The Box: Where Are Rates Headed And Why? - By Barry Habib
So the Fed stopped buying Mortgage Backed Securities, and people are wondering if this will affect mortgage rates. There's been plenty of whistling past the graveyard, guesswork and denial, where so-called experts have been trying to tell us that...
Money and Finance
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 rates will stay near zero until mid-2015. The hope is to stabilize and hopefully spur the housing recovery.
The American people haven't been purchasing houses because they either don't have jobs, don't work enough hours or have no idea what the future of their job is. It's not because mortgage rates are too high, they're at all-time lows. What I see as the reason for doing this is to further clean up the banks' balance sheets by taking MBS off their books and hopefully spurring further lending by the banks with a pocket full of cash and low interest rates.
Read more »
- Even The Rich Can't Get Credit These Days
All of the talk today when it comes to the economy is the "frozen" credit market. $350,000,000,000 of money from our taxes hasn't seemingly done anything to slow down the foreclosure rates as U.S. banks are simply using the free government money to...
- Richard Fisher Interview Excerpts
Via ValueWalk: On recent reports from the San Francisco Federal Reserve that suggest bond buying and money printing has a very minimal effect on the GDP: “I argued that when I argued against this program so I am happy to see and they have one...
- 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,...
- Gundlach Steers Clear Of Mortgage Reits
Investors should avoid real estate investment trusts that buy U.S. mortgage-backed securities because they’ll continue to cut dividends as homeowners refinance mortgages at lower rates, said DoubleLine Capital LP’s Jeffrey Gundlach. “I expect further...
- John Mauldin's Outside The Box: Where Are Rates Headed And Why? - By Barry Habib
So the Fed stopped buying Mortgage Backed Securities, and people are wondering if this will affect mortgage rates. There's been plenty of whistling past the graveyard, guesswork and denial, where so-called experts have been trying to tell us that...