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Each step is aimed at increasing the wealth of incumbent homeowners, not making housing more affordable. The economists at the Fed and GSEs are not stupid.
by bradleyjg 5y ago
Each step is aimed at increasing the wealth of incumbent homeowners, not making housing more affordable. The economists at the Fed and GSEs are not stupid.
- imtringued 5y agoThe Fed mostly wants to decrease unemployment via 2% inflation. The conventional wisdom is that supply side stimulus will create companies that hire workers. So handing out loans should do the trick. Yeah, except building housing which is one of the easiest ways to employ people is illegal.
- bradleyjg 5y agoWhy buy specifically mortgage linked instruments? There are lots of other ways to drop money from helicopters. I don’t think that choice was an accident.