View Poll Results: How long will the Fed stay out of the MBS market?

Voters
24. You may not vote on this poll
  • It won't get out in the first place

    13 54.17%
  • 1 month

    2 8.33%
  • 3 months

    3 12.50%
  • 6 months

    2 8.33%
  • a year or longer

    4 16.67%
Results 1 to 5 of 5

Thread: how long will the fed stay out of the mbs market?

  1. #1
    jk's Avatar
    jk is online now Shadow Fed, iTulip Select Member, The Brain
    Join Date
    May 2006
    Posts
    10,183

    Default how long will the fed stay out of the mbs market?

    the fed is supposed to end qe in march, and has said specifically that it will stop buying mbs. this should raise mortgage rates. simultaneously, this spring will see a sharp rise in mortgage resets for alt-a and specifically option-pay mortgages, many of which are likely underwater. how long will the fed stay out of the mbs market?

    1. it won't actually stop at all.
    2. 1 month
    3. 3 months
    4. 6 months
    5 a year or longer
    Last edited by BDAdmin; 01-24-10 at 05:12 PM.

  2. #2
    Join Date
    Jul 2008
    Location
    Colorado
    Posts
    1,408

    Default Re: how long will the fed stay out of the mbs market?

    With the government owning Fannie and Freddie, I'm wondering if there might not be ways around having to buy MBS' directly. The Fed knows about the implications of not buying MBS'. I think they've got something else up their sleeves.
    Last edited by BDAdmin; 01-24-10 at 05:13 PM.

  3. #3
    jk's Avatar
    jk is online now Shadow Fed, iTulip Select Member, The Brain
    Join Date
    May 2006
    Posts
    10,183

    Default Re: how long wiii the fed stay out of the mbs market?

    Quote Originally Posted by we_are_toast View Post
    With the government owning Fannie and Freddie, I'm wondering if there might not be ways around having to buy MBS' directly. The Fed knows about the implications of not buying MBS'. I think they've got something else up their sleeves.
    ok, fannie and freddie will buy mortgages. they will get their money from the treasury. the treasury will get its money by selling tbonds.... to the fed.
    Last edited by BDAdmin; 01-24-10 at 05:13 PM.

  4. #4
    Join Date
    Sep 2008
    Location
    North Texas
    Posts
    5,971

    Default Re: how long wiii the fed stay out of the mbs market?

    Quote Originally Posted by jk View Post
    ok, fannie and freddie will buy mortgages. they will get their money from the treasury. the treasury will get its money by selling tbonds.... to the fed.
    I agree with jk, but I can't figure out how to map that to this survey. Does indirect Fed involvement in MBS count as involvement?
    Most folks are good; a few aren't.

  5. #5
    jk's Avatar
    jk is online now Shadow Fed, iTulip Select Member, The Brain
    Join Date
    May 2006
    Posts
    10,183

    Default Re: how long wiii the fed stay out of the mbs market?

    Quote Originally Posted by ThePythonicCow View Post
    I agree with jk, but I can't figure out how to map that to this survey. Does indirect Fed involvement in MBS count as involvement?
    beats me, pc. i made up the survey before i realized that they would use fannie and freddie as ventriloquist's dummies. i originally voted 3 months, but now i think the answer is they'll never stop, but the gse's will be intermediaries. and of course the fact that the fed is no longer buying mbs will be touted as a great success in stepping back from q.e.:rolleyes:

Similar Threads

  1. Replies: 1
    Last Post: 06-03-09, 11:51 AM
  2. Replies: 80
    Last Post: 01-03-09, 09:57 AM
  3. Replies: 48
    Last Post: 11-17-07, 02:30 PM
  4. Replies: 14
    Last Post: 02-13-07, 03:18 PM

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.

-->