Posted on 09/11/2014 2:02:42 PM PDT by Lorianne
A toxic brew is bubbling in the housing market that will lead to a mortgage crisis by winter, banking analyst Dick Bove said.
Now that the Federal Reserve is nearly done with its monthly bond-buying program, which includes mortgage-backed securities, and Washington continues on its quest to unwind Fannie Mae and Freddie Mac, conditions could get dicey in the home loan market.
Bove envisions a scenario in which long-term financing, like the ubiquitous 30-year mortgage, that has come with fixed interest rates is endangered as mortgage buyers dry up.
As part of its quantitative easing program, the Fed had been buying as much as $40 billion a month of mortgage-backed securities—known as MBS and essentially mortgages bundled into products for investors. However, that buying has been reduced to $10 billion a month as part of a process often referred to as "tapering."
(Excerpt) Read more at cnbc.com ...
Doesn’t sound like a crisis if the supply outpaces the demand. Buyers will be enticed to buy.
Not for me. My mortgage is paid OFF.
Just in time for the Democrats to get out from under and set up the long-term blame game. In 2016, I( am afraid that it is still going to be "George's Fault".
Unfortunately, I am even more afraid that it is going to be believed by the dumbest bunch of "Americans" in the lifetime of living man.
WTF are these people, those tattooed, incredibly fat, sloppy, 30-somethings and 40-somethings clogging the WAL-MART parking lot and who threw Obama 53% of the vote, while waiting for Hillary?
The government threatens banks with huge fines if they don’t lend to poor people, then they get huge fines for lending to poor people. The government is still screwing around, trying to “fix” things... and that makes things worse.
This sounds familiar, except in the first home mortgage buying meltdown, it was banks buying up the stuff. Now it's the Fed. The banks had the Fed bail them out in Housing Bubble 1.0. Who will the Fed turn to when the housing bubble 2.0 has a meltdown?
Now it belongs to you and the tax assessor.
What in the world is a CNBC?
Only the birthplace of the Tea Party grasshopper - please forgive the liberal-leaning Business Insider report - I put their propaganda in italians:
Five years after his diatribe helped launch the tea party movement in American politics, CNBC rant stylist Rick Santelli called the episode "professionally the best five minutes of my life."
Wednesday marked the fifth anniversary of Santelli inciting traders to riot on the floor of the Chicago Mercantile Exchange because President Barack Obama had proposed helping struggling homeowners -- whom Santelli derided as "losers" -- in the middle of the worst recession since the Great Depression.
"We’re thinking of having a Chicago tea party in July," Santelli hollered then, to the delight of the traders around him. "All you capitalists that want to show up to Lake Michigan, I’m going to start organizing it."
Meet Mr Franklin: 
italians ?
The Fed owns guaranteed bonds. Why would they need to turn to anyone?
JohnRob has since added code to automagically close all tags at the end of a post.
I had some time to look it up and find myself feeling a bit foolish, but I have never watched it and as I research it I find that not many have.
It seems their top ranked shows have less than one half million viewers. Not exactly a number that makes me want to switch channels and hang on every word.
Santelli changed the world...altered the future. Thank God for what he did that day... thanks Rick Santelli...
China.
God Bless Rick Santelli, and I love the fact that he doesn't try to distance himself from the rant, he proudly owns it!
...”tapering.” Yah, that’s the ticket. Just in time, for the next...
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