“Main Street isn’t benefiting from the Fed.”
That’s not a bug. That’s a feature. The mission of the Fed is to support the banksters and monetize the debt. Main street can go pound sand so far as they’re concerned.
The author seems to missing a very important point about mortgage-backed securities and the critical role the Fed is playing here. The money is already on "Main Street," folks. Here's a case in point:
If a bank extended a mortgage for $300,000 and the borrower defaulted on the loan without paying down a single penny in principal, the bank may be sitting on a worthless asset but the original owner of the home who sold it to the borrower has already received the $300,000. While I am no fan of quantitative easing, this is why the purchase of mortgage-backed securities by the Fed is critical to the whole process of unwinding the mortgage crisis. The whole purpose of this program isn't to bail out banks or inflate another housing bubble (though that may be a side effect). The purpose of the program is to prop up home values to ensure that they can support mortgages that were extended over the course of the last 5-10 years.