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14 hours ago, 2rocketman said:

Also this:

https://www.cnbc.com/2020/03/29/mortgage-bankers-warn-fed-purchases-of-mortgages-unbalanced-market-forcing-margin-calls.html

This is pretty technical, but basically AFAIU, the mortgage brokers short the mortgage market for the time between them taking on the mortgage until they get it backed by the feds, as a protection (hedge) against the cost of the mortgage increasing over that period.

However, because of fed bond buying, the rates have gone drastically down and they then suffer a large volume of margin calls (demands to top up the shortfall on the short with extra funds) - and they are having difficulty covering this.

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Rumor on the grapevine (bankers) is that they are pumping insane amounts in right now, that there is no way to stop the collapse after the markets recover, without an equally gigantic injection of funds. If you think perpetual QE and then add global pandemic, you can consider, they were hoping this wouldn't happen, to the point, they ruled it out.

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On 02/04/2020 at 00:32, 2rocketman said:

Hmm, 'accidentally'? Isn't the Fed just giving its mates - actually its owners and masters - unimaginably vast amounts of wonga? They might quite like a temporary crash. Buy up as much as they can for peanuts then encourage the government to get in there and push prices back up. Job's a goodun, massive land grab. These people who amass unspendable wealth and all the power aren't just bumbling about going whoops, whoops.

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  • 416 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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