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re: Fed to buy $750 billion more of mortgage backed securities

Posted on 3/18/09 at 11:06 pm to
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 3/18/09 at 11:06 pm to
(no message)
This post was edited on 3/18/09 at 11:26 pm
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 3/18/09 at 11:07 pm to
A fund of funds?
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 3/18/09 at 11:10 pm to
Some of them have some fund of funds. Most of the structures are complex with corporate blockers for tax exempts to block UBTI and a lot of parallel funds. The structures can really get to be a total maze with the larger ones.
Posted by Rivers
Florida
Member since Nov 2008
3256 posts
Posted on 3/18/09 at 11:12 pm to
MH, you are right...but what the Fed does eventually effects everyone, regardless of the fact that they don't know what the Fed is.

I believe that what is going on, the Fed misleading the public by saying everything is under control, is negligent if not criminal. If Ben wants to run an experiment on our economy he should at least say so in front of congress and on MSM..., so far Ben and his theories are getting their azzes kicked. So Ben's new idea: If a little of that didn't work, maybe a lot of it will...SOS on a grand scale. I am not impressed with Ben.
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 3/18/09 at 11:12 pm to
Have they, generally speaking, gotten hammered, or done okay? This is completely o-t I'm just curious.
Posted by ForeLSU
The Corner of Sanity and Madness
Member since Sep 2003
41525 posts
Posted on 3/18/09 at 11:12 pm to
quote:

Not only that job losses are increasing, not decreasing. People are frightened and it isn't easy to unfrighten them.


In addition, many families have changed their perspective and are now more content with what they have. Plus, the number of starter mansions for sale will probably not be absorbed for years.

There are developments everywhere that are 30% complete with folks owning new houses that have trash piles next door and mud piling up in their yards after every big rain. I've seen partially built homes that are rotting and will probably have to be torn down. This is FAR from a bottom.
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 3/18/09 at 11:18 pm to
I'm out. Have a good night money board...
This post was edited on 3/18/09 at 11:29 pm
Posted by kfizzle85
Member since Dec 2005
22022 posts
Posted on 3/18/09 at 11:27 pm to
If you can raise the cash than more power to you (as opposed to, say, having to issue govt backed debt). I was under the impression that large PE firms were just as levered as anybody though.
Posted by Tiger n Miami AU83
Miami
Member since Oct 2007
45656 posts
Posted on 3/18/09 at 11:31 pm to
Most are mostly or fully committed. In this environment though many are just creating new funds and are finding some investors that want to take advantage of the current environment.

I'm out now. Night all.
Posted by LSURussian
Member since Feb 2005
134923 posts
Posted on 3/19/09 at 5:11 am to
quote:

I'm about to do a blog post on this,
quote:

If I issue debt and my wife offers to buy it at an above market price,

If that's the best analogy you can come with, Colonel, I won't bother to click on your blog.
Posted by igoringa
South Mississippi
Member since Jun 2007
12398 posts
Posted on 3/19/09 at 7:00 am to
quote:

put a floor in the housing market


An artificial floor at unsustainable levels.... yes that smells of economic prosperity!
Posted by igoringa
South Mississippi
Member since Jun 2007
12398 posts
Posted on 3/19/09 at 7:05 am to
quote:

Ultimately housing prices cannot outpace personal household income over the long term.


And they still do outpace incomes... case shiller helps you out with that monthly. Artificially lowering interest rates to try to close that gap in the very short term only results in the disconnect re-appearing once you stop interfering and the cycle completes... you cannot keep a bubble inflated period... and by all standard measures of real estate affordability, rental to prices, basic, income multiples, inventory etc... we are still in the bubble.

quote:

At this point home prices are getting artificially low due to the spiral effect of foreclosures and short sells (in some areas).


Are you fricking insane? Show us the statistics to support this (let me guess we will get an anectdotal example). You live in a dream world.

quote:

This will change and there actually is pent up demand from those who want to buy and have wanted to but do not want to buy until the market DOES have a floor.


There are 2 million empty freaking housing units in this country... there is not near enough household formation to absorb that on a timely basis... seriously what planet are you on? This is not just a foreclosure issue, it is a massive oversupply issue.
Posted by MileHigh
Most likely a mile high
Member since Jan 2004
7920 posts
Posted on 3/19/09 at 8:15 am to
quote:


I believe that what is going on, the Fed misleading the public by saying everything is under control, is negligent if not criminal.

eh, a lot of that is psychology. If you tell everyone to freak out, they will. I don't fault him for lying saying its all ok.
quote:

I am not impressed with Ben.

yeah, me neither.
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