Fed may buy Mortgages next, Treasury Investors Bet, page
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Topic started on 24-3-2008 @ 12:29 PM by DimensionalDetective

Fed may buy Mortgages next, Treasury Investors Bet


www.bloomberg.com
March 24 (Bloomberg) -- Forget lower interest rates. For the Federal Reserve to keep the financial markets from imploding it needs to buy troubled mortgage bonds from banks and securities firms, say the world's biggest Treasury investors.

(visit the link for the full news article)


reply posted on 24-3-2008 @ 05:59 PM by St Udio
Originally posted by DimensionalDetective

Fed may buy Mortgages next, Treasury Investors Bet


www.bloomberg.com
March 24 (Bloomberg) -- the Federal Reserve
.... needs to buy troubled mortgage bonds from banks ,
say the world's biggest Treasury investors.






the article does not go into the fact of ~ just who are these Treasury Investors ~


for the Federal Reserve to outright Buy all the existing mortgage paper
(both good and bad) would either bankrupt the Fed
or just deplete the Federal Reserves' appox. $700 Billion in Treasuries
and their $700 Billion in other holdings & securities.


The Fed last week announced they will 'swap' up to $400 Billion
they have in US Treasury bonds/securities,
with the bank collateral consisting of AAA investment paper and mortgage bonds...& they would lend that 'swap' for 28-90 day intervals---
with the implication that the short term loans could be recycled again ->
which effectively makes the Fed the 'owner' of that mortgage bebt when it is presented for loans.

So, these shadowy 'worlds biggest Treasury Investors' are actually behinf the curve.

Next... It is my understanding that Red China has the largest stash of US Treasuries on earth---some +$1Trillion Dollars worth !!

If Red China is that undisclosed 'worlds biggest Treasury Investors'...
I can appreciate their opinion and input... but ...
Let them shut up aand hold those Treasuries or else convert the Treasuries
they have into cash, and then buy assets through their "Sovereign Wealth Funds"...

Or else - why doesn't the reporters actually Identify this unnamed group of wealthy Treasury holders?



'nuff said imho


reply posted on 24-3-2008 @ 06:10 PM by worldwatcher
reply to post by St Udio


great point
and this pretty much tells it as it is for those who don't know
Biggest Foreign Treasury Investors

as for this whole mortgage mess, all I can say is... NO fair. No fair to people who handle their budgets and live within their means, but can't afford a home now because of the bubble blowing and bursting that has been going on.
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