The Fed’s "Temporary" Mortgage-Backed Security Experiment Will Last Decades \ stacker news ~econ

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The Fed’s "Temporary" Mortgage-Backed Security Experiment Will Last Decades mises.org/power-market/feds-temporary-mortgage-backed-security-experiment-will-last-decades

475 sats \ 21 comments \ @Undisciplined 15 Nov econ

By Alex J. Pollock & Paul H. Kupiec

Mortgage-backed securities will continue racking up billions of dollars in cash losses each month.

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50 sats \ 6 replies \ @SimpleStacker 15 Nov

Nothing is so permanent as a temporary government program.

- Milton Friedman

21 sats \ 5 replies \ @Undisciplined OP 15 Nov

DOGE will be the most ironic case study.

18 sats \ 4 replies \ @SimpleStacker 15 Nov

As much as I find DOGE entertaining, it did strike me as ridiculously redundant that it got appointed two leaders, and we already have the GAO which sounds like pretty much the same thing

21 sats \ 2 replies \ @Undisciplined OP 15 Nov

I am strongly considering applying to work for DOGE. It seems like a very fun assignment and I don't know how many of our colleagues would want to do it.

21 sats \ 1 reply \ @SimpleStacker 15 Nov

Remember me when you become Elon's right hand man

21 sats \ 0 replies \ @Undisciplined OP 15 Nov

I'd rather hitch my wagon to Vivek.

12 sats \ 0 replies \ @OriginalSize 16 Nov

Lol that the GAO does anything at all. If it did, there wouldn't be a deficit.

15 sats \ 3 replies \ @sangekrypto 15 Nov

It looks like the Fed is stuck with very large, losing “temporary” mortgage-backed securities investments for a long time to come.

wait how long will this happen?

22 sats \ 2 replies \ @bren 15 Nov

For decades I suppose.

4 sats \ 1 reply \ @Undisciplined OP 16 Nov

Until they can unwind those "investments" without tanking the economy.

0 sats \ 0 replies \ @bren 16 Nov

I'm sure that is their plan. I wonder how often that actual happens.

13 sats \ 2 replies \ @Rothbardian_fanatic 15 Nov

The FED knew, when it was buying those MBS that they were fraudulent. They bought them after they had been exposed as nothing but amalgamated garbage. They knew that the rating agencies gave them bogus ratings. Already Bear-Sterns and Lehman Brothers were selling them as fast as they could. The mortgage loans that were backing the security were, at best, sub-prime and they knew it because they were supervising the banking investments. They bought them to bail the banksters out. Now they have to deal with the aftermath of their bad decision to make the banks TOO BIG TO FAIL. The FED should fail, too!

10 sats \ 1 reply \ @Undisciplined OP 15 Nov

I thought it was going to be a bigger problem at the time, but I'm not surprised it's lingering.

24 sats \ 0 replies \ @Rothbardian_fanatic 15 Nov

Yeah, there is no way they want to take a half-trillion dollar loss on the books! There is not enough space in the cells for such numbers! Why don’t we apply Warren’s marked to market methods of assessing the value of current assets? We could break the FED right now! It would go bankrupt and we would be done with it because it is a private organization.

21 sats \ 5 replies \ @Satosora 15 Nov

I dont know why elon musk keeps associating himself with doge.

12 sats \ 0 replies \ @Rothbardian_fanatic 15 Nov

I think he took it up as a joke, not thinking it would lead to anything. BTW, does he have dogs, perhaps shiba-ion?

20 sats \ 3 replies \ @Undisciplined OP 15 Nov

It would be pretty hard to distance himself from it. I suspect he just thinks it's funny.

12 sats \ 0 replies \ @Rothbardian_fanatic 15 Nov

I gathered from previous communications the though doge coin was a joke meme sort of thing. Then he made money on it.