Posted on 03/17/2010 7:14:53 AM PDT by TigerLikesRooster
PIMCO: End of mortgage buys form of tightening
Jennifer Ablan
Tue, Mar 16 2010
NEW YORK (Reuters) - The end of the Federal Reserve's program of purchasing $1.25 trillion of mortgage-backed securities at the end of March is a form of tightening monetary policy, the chief of the largest U.S. bond fund manager said on Tuesday.
Mohamed El-Erian, chief executive and co-chief investment officer of Pacific Investment Management Co, or PIMCO, said the end of the Fed's mortgage program, one of the U.S. central bank's major support programs, signals a form of credit tightening.
The Federal Reserve Open Market Committee's statement on Tuesday "met market expectations on the three key aspects of leaving interest rates unchanged, maintaining dovish language about future policy moves and allowing the special programs to lapse," El-Erian told Reuters.
By the end of March, the Fed plans to have bought $1.25 trillion worth of mortgage-backed securities and about $175 billion worth of agency debt -- a process economists and investors have called "quantitative easing."
(Excerpt) Read more at reuters.com ...
P!
This is good news, now lets find out who can afford their McMansion and who can’t.
Your class warfare is noted, but the majority of failed mortgages are inner city, not suburban McMansions.
If they can’t pay throw them out in the street!
Taxpayers shouldn’t have to pay one cent to keep someone in a home!
Your class warfare is noted, but the majority of failed mortgages are inner city, not suburban McMansions.
Has nothing to do with class warfare, it has to do with folks buying too much house based on income and betting the come that housing prices would continue to run up. We have pretty well destroyed a generation of equity with the inferno known as CRA. The wash out will continue until normal debt to equity ratios are reached. The reason we are in this mess is due to the endless war on poverty waged by social engineers in both parties. Freedom allows both success and failure. There are some among us that do not wish to look at failure as representative of the individual but wish it to be caused by evil outside forces. I am not one of those.
“Has nothing to do with class warfare, it has to do with folks buying too much house based on income and betting the come that housing prices would continue to run up. “
The liberal press has you believing that. The vast majority of failed mortgages are low income people that the Democrats, Barney Franks specifically and Clinton prior to that, demanded banks make loans to.
The liberal press has you believing that. The vast majority of failed mortgages are low income people that the Democrats, Barney Franks specifically and Clinton prior to that, demanded banks make loans to.
Dude, I don’t live in the inner city and have watched this process work itself through my neighborhood. Yes, there are an awful lot of inner city pump and dumps, but this phenomena was shared across the income strata. How do you restrain some one who watches home prices for a 3 bedroom run from $125K to 400K in less than 7 years? Bubbles happen, throwing free money at it makes the bubble worse not better.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.