Jason Burack: New Scheme – US Banks Go Crazy Buying Mortgage Bonds To Front Run The Fed

Wall St. For Main St., Released on 10/11/20

Since March the Fed has increased its buying of mortgaged backed securities (MBS) to $40 billion per month and Wall Street (hedged funds and large banks) have responded by creating more and front running the Fed for easy profits on this new scheme.

‘Treasuries on steroids’: U.S. banks’ mortgage bond trading bonanza www.reuters.com/article/us-us…

Powell Fed Embraces Monetary Relativity www.theinstitutionalriskanaly…

The Fed has purchased $610.943 billion in MBS since March 4, 2020. See link below.

St. Louis Fed website: Assets: Securities Held Outright: Mortgage-Backed Securities (MBS) on Fed Balance Sheet: fred.stlouisfed.org/series/WS…

Track the Fed’s official balance sheet here: fred.stlouisfed.org/series/WALCL

Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason’s work at his blog website at www.jasonburack.com.