Fed move to lower mortgage costs

http://www.marketwatch.com/news/story/fed-start-buying-mortgage-securities/story.aspx?guid={2FCC826E-D48B-4D18-8881-209269D2752C}

The Federal Reserve said late Tuesday it will begin buying mortgage securities backed by Fannie Mae

, and Ginnie Mae in early January. The Fed said it “has selected private investment managers to act as its agents in implementing the program,” which is “separate and distinct from the U.S. Treasury’s program.” The purchases will be financed through the creation of additional bank reserves, the Fed said

This is the same horseshit that got us into the financial mess in the first place!

See: http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&partner=permalink&exprod=permalink

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

PEOPLE WAKE UP!

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