Domain: tiger-web1.srvr.media3.us Trump directs cash rich Fannie/Freddie to buy $200B in mortgage bonds to drive down rates | Political Talk
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Trump directs cash rich Fannie/Freddie to buy $200B in mortgage bonds to drive down rates

Posted on 1/8/26 at 4:05 pm
Posted by Kjnstkmn
Vermilion Parish
Member since Aug 2020
20762 posts
Posted on 1/8/26 at 4:05 pm
This post was edited on 1/8/26 at 4:06 pm
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
95499 posts
Posted on 1/8/26 at 4:06 pm to
Goat Prez
Posted by hawkeye007
Member since Feb 2010
6126 posts
Posted on 1/8/26 at 4:08 pm to
Yeah we had the fed reserve do this for 10yrs. It got us into the mess we are in now.
Posted by Robin Masters
Birmingham
Member since Jul 2010
35757 posts
Posted on 1/8/26 at 4:08 pm to
The people’s POTUS!
Posted by The Pirate King
Pangu
Member since May 2014
66900 posts
Posted on 1/8/26 at 4:08 pm to
The winning has almost gotten to be too much. I can't take it anymore.
Posted by The Pirate King
Pangu
Member since May 2014
66900 posts
Posted on 1/8/26 at 4:10 pm to
quote:

Yeah we had the fed reserve do this for 10yrs. It got us into the mess we are in now.


The interest rates aren't even that bad historically and the economy and stock markets are doing well and have absorbed the tariffs. What "mess" are we in exactly?
Posted by KosmoCramer
Member since Dec 2007
80210 posts
Posted on 1/8/26 at 4:10 pm to
quote:

Yeah we had the fed reserve do this for 10yrs. It got us into the mess we are in now.


Wasnt the issue the quality of the bonds (sub-prime) and not the act itself?
Posted by TigahTeeth
Georgia
Member since Feb 2016
6295 posts
Posted on 1/8/26 at 4:11 pm to
Did Rogerthefibber, Slowblowfig and Eurocrap tell you that?
Posted by hawkeye007
Member since Feb 2010
6126 posts
Posted on 1/8/26 at 4:19 pm to
21yrs in the mortgage business taught me that. Qua-native easing. Started after the crash of 2008. It’s what kept rates from going to 10%. So what that did was artificially inflate the housing market with cheap rates for 10yrs. So what happened? Prices went up, fast forward to 25 and lowering interest rates will continue to raise home prices . Do we really need home prices higher in the current environment?
Posted by stout
Porte du Lafitte
Member since Sep 2006
180443 posts
Posted on 1/8/26 at 4:22 pm to
This is pretty smart since it is not issuing new debt so it's not inflationary. Total money in the system is unchanged
Posted by stout
Porte du Lafitte
Member since Sep 2006
180443 posts
Posted on 1/8/26 at 4:23 pm to
quote:

Yeah we had the fed reserve do this for 10yrs. It got us into the mess we are in now.



There is a difference in using cash on hand and issuing new bonds.
Posted by Kjnstkmn
Vermilion Parish
Member since Aug 2020
20762 posts
Posted on 1/8/26 at 4:23 pm to
The federal reserve has one foot in the grave. The endless is ending and 1913 is being reversed, so new mechanisms are needed for things like controlling interest rates to serve the interests of We the People instead of elite bankers.

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This post was edited on 1/8/26 at 4:25 pm
Posted by stout
Porte du Lafitte
Member since Sep 2006
180443 posts
Posted on 1/8/26 at 4:25 pm to
quote:

Qua-native easing.



This isn't QE. QE creates new money. This is using cash on hand and is not inflationary. Money supply is unchanged

21 years in the mortgage business then you should know the difference in bonds vs using cash on hand.

Posted by Big Scrub TX
Member since Dec 2013
38920 posts
Posted on 1/8/26 at 4:30 pm to
quote:


Wasnt the issue the quality of the bonds (sub-prime) and not the act itself?
No. AFTER the crisis, "quantitative easing" helped cause years of depressed interest rates. They were buying the same type of bonds.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
470083 posts
Posted on 1/8/26 at 4:30 pm to
With populists, expect populism
Posted by Big Scrub TX
Member since Dec 2013
38920 posts
Posted on 1/8/26 at 4:31 pm to
quote:

This is pretty smart since it is not issuing new debt so it's not inflationary. Total money in the system is unchanged
If rates are lower, then demand will increase. That will keep upward pressure on prices.

What is really needed is: NEW SUPPLY OF HOMES
Posted by RobbBobb
Member since Feb 2007
33651 posts
Posted on 1/8/26 at 4:31 pm to
quote:

So what happened? Prices went up, fast forward to 25 and lowering interest rates will continue to raise home prices . Do we really need home prices higher in the current environment?

You wont see higher prices when the market is flooded

And since the market is intentionally shorted by institutional investors, then you cant sit there and type that prices havent been going up due to manipulation

We 'bout to get unmanipulated

Posted by Big Scrub TX
Member since Dec 2013
38920 posts
Posted on 1/8/26 at 4:32 pm to
quote:

21 years in the mortgage business then you should know the difference in bonds vs using cash on hand.
I think you mean the difference between spending cash on hand to buy bonds as opposed to printing money to buy bonds.
Posted by stout
Porte du Lafitte
Member since Sep 2006
180443 posts
Posted on 1/8/26 at 4:34 pm to
quote:

That will keep upward pressure on prices.


Yea I didn't get into that

I was simply speaking to the nature of using the cash on hand. No new money = no new inflationary policy.

Lower rates always = higher home prices, though.

quote:

What is really needed is: NEW SUPPLY OF HOMES


We need to stop meddling in the market and let it react naturally. Affordability would come back with a major price correction.

Supply won't be much of an issue as boomers die off. A large issue is those boomer homes are huge and worth a lot based on the current market.
This post was edited on 1/8/26 at 4:38 pm
Posted by stout
Porte du Lafitte
Member since Sep 2006
180443 posts
Posted on 1/8/26 at 4:36 pm to
Using cash on had to buy bonds is not QE no matter how you spin it

The FED is not involved
No new money is created
Reallocates existing cash
This is for housing only. Not systemic

It looks similar on the surface but by all definitions, this is not QE
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