STOCK MARKET WATCH - Thursday, 26 January 2012

[Tansy_Gold]

107. Is there something wrong with me?

"Buying mortgage bonds" suggests to me some wacko kooky scenario like this:

"Okay, guys, here's how we're gonna do this. The Fed is gonna print a bunch o' money and lend it to the banks at zero interest. Or maybe even .01% negative interest, just so's they'll borrow it in bunches. Then to cover the printing o' the money, the Fed is gonna buy barrels of stinky mortgages from the banks by selling bonds to investors who will get loans from the banks at really really low rates. That way the banks won't have to mark down their mortgage inventories and nobody questions what the Fed's got on its books, and the investors will be happy 'cause they know the Fed won't default. Cool idea, right?!"

Does anyone ever take these froot loops aside and tell 'em there ain't gonna be no "participation of housing" if people don't have jobs? There's only so much fucking paper pushing you can do. . . . ..