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Someone smarter than me once told me, "never bet against the fed." Being short on housing seems like doing just that. Not only have they been keeping money di
by nostromo 13y ago
Someone smarter than me once told me, "never bet against the fed."
Being short on housing seems like doing just that. Not only have they been keeping money dirt cheap, bailing out banks, taking over Fannie & Freddie, but the Fed even went so far as to buy junk mortgages directly.
In a perfect laissez-faire fantasy world, this guy is probably right. In the world we live in, where the US Government and Federal Reserve do everything they can to keep the music playing, perhaps not.
- dnautics 13y agothe reason why you never bet against the fed is more subtle. You should never bet against the fed, not because it never causes downturns, but because by the time it actually causes the downturn you've lost ground because of your short position, and hard. Unless, you're really lucky.