Just to prove the Fed hasn’t got a clue what its doing. But at least it made a lot of pretty 000’s on its balance sheet.

Did the Fed Just Accidentally Trigger a Housing Market Crash?

By flooding the market with money, the Federal Reserve just accidentally pushed mortgage bankers to the brink of bankruptcy.

  • The Federal Reserve just bought $250 billion of mortgage-backed securities in a bid to strengthen the markets.
  • But the move caused a tsunami of margin calls across the mortgage banker industry. Some warned they could go bankrupt within days.
  • Homebuyer demand has dried up and millions of mortgage delinquencies loom.
READ  CONFIRMED: Newsom BUSTED! Look What They Just CAUGHT Him Doing That Will END Him For Good

The Federal Reserve unloaded its bazooka of stimulus all over the markets in the last two weeks. But there’s some major collateral damage. By flooding the markets with money, they may have accidentally trigged a housing market crash.

READ  Framing Lumber And Foodstuffs SOAR As Fed Balance Sheet Approaches $8 TRILLION

The Mortgage Bankers Association (MBA) warned of ‘large scale disruption’ to the housing market and accused the Fed of using a ‘sledgehammer.’

This is a collapse of the system.

 

 

45 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.