Fed Will Begin Buying Mortgage-Backed Securities Next Month
The Federal Reserve announced moments ago that it will begin its previously announced plan to buy mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae early next month.
The idea behind the plan is to bolster the weak housing market and restore confidence to the broader economy.
The Fed said it would pay for the securities by printing more money, a move that could fan inflationary fears.
To execute the buying spree, the Fed has hired BlackRock, Goldman Sachs, PIMCO and Wellington Management Company.
-- Frank Ahrens
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By
Frank Ahrens
|
December 30, 2008; 4:41 PM ET
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The Ticker
| Tags: Fannie, Federal Reserve, Freddie, Ginnie Mae, mortgage
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Posted by: john88 | December 30, 2008 5:19 PM | Report abuse
You don't need the money bunnies or the screamers to tell you it's in-fla-tion. Get to Home Depot for that wheelbarrow.
Posted by: whocares666 | December 30, 2008 9:12 PM | Report abuse
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The FED will destroy the value of the dollar. The house debtors will be saved. The collateral damage will be the savers. Think about those 75 and 80 year old retirees with their money parked in CDs. Are they aware of what is about to happen to them? I don't know about anyone else but this fits my definition of evil.