NY Fed Opens 'Pawn Shop' to Buy ABS 'Junk' [View article]
How about a rush to Treasuries and a massive sell-off in the stock market? That would be a major drawback considering we have not necessarily really tested the low DOW 7500 again - that would break it for sure.
On Dec 06 02:14 PM texalope wrote:
> Seems simpler to have the Treasury explicitly guarantee Agency MBS. > > This should bring down the spread and lower rates. I'd like to hear > the logic against doing this.
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How about a rush to Treasuries and a massive sell-off in the stock market? That would be a major drawback considering we have not necessarily really tested the low DOW 7500 again - that would break it for sure.
Dec 06 16:02 pm
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All Comments by Anthony M. Freed »NY Fed Opens 'Pawn Shop' to Buy ABS 'Junk' [View article]
On Dec 06 02:14 PM texalope wrote:
> Seems simpler to have the Treasury explicitly guarantee Agency MBS.
>
> This should bring down the spread and lower rates. I'd like to hear
> the logic against doing this.