“Wind down the two companies and end their longtime implicit guarantee” is a hell of an undertaking, considering that transferring these agencies into private hands did not work so well the last time. What about simply getting rid of them?
The chart below shows fixed rate agency MBS issuance since the financial crisis. With the Fed taking out some half of this gross issuance (see post), one would think there should be paper left for other investors, right?Source: JPMorganWrong. The net (…
Well, according to this link:
http://finance.yahoo.com/q?s=bac&ql=1
…Bank of America is solidly back in the six-dollar range, and headed lower.
Poor “Uncle Warrant” must be kicking himself for piling into this pig.
Anyway, are we coming closer to…
Wow, looking at the chart of new McDebt for McShantys below, one has to ponder how much more horrid it would look, had not Uncle Thug and the Fed poured TRILLIONS of dollars into the GSEs, the banks, and into McHousing programs.
Notwithstanding, it lo…
Fed credit declined last week, as a big drop in TAF offset the Fed’s buying of GSEs and Treasuries. The Fed did not settle any…
Critics of the Fed have expressed concern about the inflationary implications of the huge expansion of the Fed’s balance sheet, particularly excess reserves. The reserve…
The Fed’s balance sheet took a huge drop last week. In spite of all of the direct buying of securities total Fed credit has actually…
Today’s report examines the latest Fed balance sheet data and surprise, surprise, the Fed had a little shrinkage problem this week. The cuts were particularly…
I got this question this morning from a poster over on the Stool Pigeons Wire. Am I correct in stating that regardless of whether or…
