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Is there a housing bubble brewing?

4 pointsby nassirkhanover 9 years ago

2 comments

droffelover 9 years ago
Brewing? It got propped up by all the toxic MBSes being transferred onto the Fed&#x27;s balance sheet, which they&#x27;re still planning on rolling over (as of today&#x27;s FOMC guidance). The housing bubble should have popped in &#x27;08, its practically a zombie at this point.<p>&quot;The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well under way. This policy, by keeping the Committee&#x27;s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.&quot;
nickgrosvenorover 9 years ago
looks like the article comes from a non bias source...
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