HERE'S YER SIGN, IF FED RAISES RATES 1% IT WILL FORCE MILLIONS TO BUY HOMES. IN ADD. TRILLIONS OF TOXIC ASSETS DID NOT EVAPORATE.
The fed, by zero rates, have effectively moved massive amounts of toxic assets and underwater mort. Paper from the govt. Risk to public co. And investor debt=agnc leverage 10x1, as most reits. All created during zero rates. Now the pendulum has swung. The fed has milked it max. Which means beyond the point of diminishing returns.
ben learned much at princeton. and history don't lie. pumpers shills and mm's do. but the fact is those bad loans from bac and citi, and jpm, lehman's , gs, and all the multitude heavily leveraged into complex derivative investments, (just like newbie agnc) have moved most off balance sheets. just as freddie and fannie are now making record profits, were giant losers and insolvent in toxic debt. where did it all go....mmmmm
onto pension funds and agnc and reits created by fed. And now deflated by fed. ben has no choice. must keep housing and banking afloat. And fred and fannie. all held together by a massive shift in who holds the bad underwater paper. At last look agnc had 80billion worth. and the great unwind is already 6 months underway. 2 years to go.
you are welcome for this flawless explanation. no no sit down. no standing o needed....ohh your knees and back. oh well if you insist.