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GSEs Into Conservatorship: Can Housing Stabilize Now?

home prices are falling at 10% rate yoy and the treasury is going to buy some of those MBS. those mortgages better be with 20% down payment. ahhh, how many people can put down 20% for a new home? well, maybe the housing market will not stabilize as soon as you see it.

and how about the secondary market? when those monsters start in 2010 MBS fire sales in the tune of 150bn per year? you think those will not be significantly discounted to change hands?