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The problem (I think) is that the Fed has dumped too much money into the system. There are no assets left to buy at reasonable prices. So now investors are bu
by timmg 5y ago
The problem (I think) is that the Fed has dumped too much money into the system. There are no assets left to buy at reasonable prices. So now investors are buying homes.
This is the downside to the current "bailout". I think the last "bailout" was a bit more lean. People were hurt, but in different ways than they are today.
- digitaltrees 5y agoREITs have been doing this for a long time. It accelerated after 2008 because of the housing collapse which was triggered by Banks creating to much money rather than the Fed.
- bravo22 5y agoFannie and Freddie bought up a lot of subprime mortgages.
- digitaltrees 5y agoRed herring. Most origination of subprime started with private market actors. GSEs were a fraction of the market; very late to the game and never held anywhere near what investment banks did.