They unwind when sold. If they sell below cost then the loss is made geometrically worse by the amount of the leverage.
30 year mortgages are below 6%
That means foreclosure for most who bought 4.5% ARMs two years ago and now have to reset. Not to speak of loans that are underwater due to declining home values.
The dollar has strengthened in the last week
According to BLS inflation statistics, the dollar has lost 95% of its value since the Fed was created in 1913. Confirmed by the fact that over the same period gold has gone from $35 to $800.
Taking MBS as collateral for a loan that must be paid back is not a "giveaway".
It is when accounting rule FAS 157 is being thwarted by extending its deadline. And why is the Fed money auction anonymous ? So much for transparency.
LOL! Don't tell the author, but 3.4 billion shares unwound on the NYSE today.
That means foreclosure for most who bought 4.5% ARMs two years ago and now have to reset.
The author said rate cuts didn't lead to lower mortgage rates. He was wrong.
According to BLS inflation statistics, the dollar has lost 95% of its value since the Fed was created in 1913.
LOL!
Confirmed by the fact that over the same period gold has gone from $35 to $800.
Gold dropped from over $850 in 1980. I guess the dollar strengthened in the last 27 years?
It is when accounting rule FAS 157 is being thwarted by extending its deadline.
How is that a giveaway?
And why is the Fed money auction anonymous ?
Ahhh, the secrecy is a giveaway. Why?
So much for transparency.
I guess we're doomed.