Title: Mcgowanjm Wire 2012 Source:
[None] URL Source:[None] Published:Feb 26, 2012 Author:Various Post Date:2012-02-26 09:15:13 by A K A Stone Keywords:None Views:1371757 Comments:2390
As one would expect of a massive Ponzi Scheme collapsing in real-time, the model has become self-cannibalizing. The crushing impacts of reverse growth have been felt all along at the bottom of the pyramid of course. Next came the liquidation of the middle class,....
“The entire move in MBS prices will go into profit margins,” one mortgage market veteran told the Berlin-New York-Los Angeles mortgage study group last week. “FHFA has made sure that the mortgage market has oligopoly pricing and zero competition for the existing servicers. QE3 is risk free profits for the unworthy. And we wasted 40 years and Trillions of dollars fighting the USSR over the need for a free enterprise system?”
Unfortunately, since two thirds of the mortgage market cannot be refinanced, the effect of the Fed’s largesse will indeed go straight to the GSEs and Wall Street zombie banks. This is the key, historical error being committed by Bernanke and the rest of the FOMC.
