retired aviator

Is It Time to Recognize Reality?

<The Fed is literally the entire mortgage market. Yes, really.>

Your analysis behind this statement is so bad a child could see through it. After I read your blurb and the linked Chris Martenson article I realized your analytical abilities are so questionable that I stopped wasting my time reading any more of your article.

You compare the amount of new mortgages originated in 2009 through August to the amount of mortgages purchased by the Fed in 2009 through August. But the Fed is not purchasing these new mortgages! These mortgages haven't even had time to become 'troubled' yet. Obviously the Fed is buying mortgages older than these.

The relevant statistic would be the sum of the Fed's mortgage holdings compared to the whole of the mortgage market, i.e. the unpaid principal value of ALL mortgages regardless of the year of origination. Comparing the Fed's purchases in '09 to mortgages originated in '09 is meaningless.

As if this scare tactic wasn't enough, you are implying that if the Fed owns it, it must be toxic and potentially worthless. Where's the statistic on how many of the Fed's mortgages are delinquent or in default? Where's the stat on the market value of the homes collateralizing their mortgages? Those are the relevant statistics.