Removal of Band-Aids to Reveal Deeper Housing Wounds?
With worries about the deficit intensifying, the government is eager to start withdrawing some of its support programs. The first step could happen as early as next month, when the Federal Reserve has said it will end its trillion-dollar program to buy up mortgage securities. That program has driven mortgage interest rates to lows not…
“Yet it is uncertain whether the government can really pull back without sending housing markets into another tailspin.” – NY Times
Actually, it is absolutely CERTAIN. May Day…May Day!!!
***Bid half off peak comps***
DCB, I agree….Germans DO NOT want to bail out Greece. They just raised the age of retiremnt in Germany from 65 to 67 to collect a pension and it’s 63 in Greece.
The loons sure are out today.
To all you posting doomsday prognostications as if they were fact, were you saying the same thing a few years ago?? If so, hopefully you’ve made some money off it and are taking profits now, because many signs of a bottom are in.
Sure, housing prices may slip a bit more, and of course there is always the chance of another steep downturn. But if you think the U.S. gov’t is “bankrupt”, the finance sector is the only one that benefits from supporting the housing market, and house prices are definitely going to crater, I’d love to take the other side of a trade with you. And since you think all these things are so certain, I can probably get good terms 😉
The dollar is not dead.
The European Union is not dead yet either, but there have got to be a lot of Germans wondering what the hell they need it for.
hannible, any clue what Agencies are???
Watch the news if you can’t read it.
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Here comes a fight!!!
hannible, go look at the data, jackass and see how many people are buying US Treasuries. Have you any clue whatsoever how much of these the government auctions off daily…any clue whatsoever?????
Why should interest rates go up? Because no one is buying US Treasury notes DIBS! Watch the news if you can’t read it. Watch how many people dump condos on the market once they can’t keep up with maintance costs. It is 1970’s real estate market all over bany!
Joe…the numbers just came out today for Jan purchases of securities by foreigners…up further…yes, there was some jockeying around on the curve.
The amount of US debt is well known to the market. If there was something that was going to spook the collective knowledge of the market it would have done so already.
Additionally, the state of things in Europe right now is pretty precarious (Greece) and that causes further purchases of both dollars and treasuries as the safe haven globally…yes, it still is.
That said, I do own some TYO & TMV short the 5-30 year Treasuries. I also own a lot of 30 year treasuries that I bought yielding 5.4% back in 2006.