3 ms·
He seems to be making the argument: 1. The US government can borrow money at extremely low rates 2. Purchasing mortgage-based securities at the current mar
by ericwaller 18y ago
He seems to be making the argument:
1. The US government can borrow money at extremely low rates
2. Purchasing mortgage-based securities at the current market price will eventually make you a lot of money
3. So.. the government should leverage up and buy 700 Billion worth
This sounds awfully similar to the advice given to people buying homes during the real estate bubble. "Buy the biggest house you can get a loan for.. it'll be worth more tomorrow anyway, so you can just sell it and make money!"