bulls-ass-0410.jpgThe program that saw the Federal Reserve pump more than a trillion dollars into the purchase of mortgage-backed securities came to an end yesterday. The Fed’s purchases helped drive rates on 30-year mortgages down from over 6 percent when the program started in early 2009 to under five percent last month. Susan M. Wachter, professor of real estate and finance at the Wharton School of the University of Pennsylvania, called the program the single most important move to stabilize the economy and to prevent a debacle.” The big question now is, Where do rates go from here?
Fed Ends Its Purchasing of Mortgage Securities [NY Times]


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  1. “The big question now is, Where do rates go from here?”

    That’s easy: 8+ percent like before the 30 year credit/debt expansion began. Otherwise, why was there a need for “the single most important move to stabilize the economy and to prevent a debacle”? But the bullpen will try to obfuscate it all away with a barrage of details so they can feel better about their positions.

    An even bigger question is: Did the move REALLY stabilize the economy, aka HOUSING for now, and prevent a debacle or did it merely buy time? I’d say the latter.

    The photo is quite appropriate for the case that rates won’t go up significantly and won’t compound the collapse already in place: bullshit.

    ***Bid half off peak comps***

  2. Short answer, I’ll give you one guess where rates will go from here.

    Posted by: Park_loper at April 1, 2010 10:00 AM

    UP, probably about 40-50% basis points. No big deal.

  3. Animal husbandry, Pete. You can major in it at Cornell and most universities in Texas. It’s just that this apparent drop-out is trying to do it to the bull and not the cow.

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