madasiwannabe

GSEs Into Conservatorship: Can Housing Stabilize Now?

So investorslive, how do you explain the spread between the fed rate and mortgage rates? The fed lowered rates and the mortgage rates went up. What makes you think having the government explicitly back $5 Trillion in bad debt will help the credit market or improve the spreads. Hank just affirmed to the world that the GSE's paper is toxic and virtually worthless. Just because it's government backed doesn't make it good and taking on this much debt doesn't make the treasury's sheets any better either. Your post might excite day traders, but it is just wishfull thinking.