Largest purchaser of mortgages in 2009: The Federal Reserve

You may have seen the great line of questioning that Rep. Alan Grayson (FL) asked Federal Reserve General Counsel Scott Alvarez during the HR 1207 Hearing last Friday.  It went something like this,

Alan Grayson: I would like to know whether it is within the Federal Reserve’s legal authority to try to manipulate the stock market or the futures market.
Federal Reserve GC Scott Alvarez: I don’t believe the Federal Reserve tries to manipulate the stock market…

It’s a shame however, that Rep. Grayson didn’t ask Fed. Reserve GC Alvarez to what extent the Federal Reserve tries to manipulate the ‘housing market’.  As Chris Martenson points out on his site,

…the Federal Reserve alone bought $722 billion of mortgages and agency debt when only $686 billion in new mortgages were issued.  So, through August, the Fed bought more than 100% of the entire supply of new (purchase) mortgages in 2009.

That’s not a free housing market; that’s a market bought, owned, and sustained by the Federal Reserve’s willingness to print up three quarters of a trillion dollars out of thin air.

That’s of course, way beyond ‘manipulation’.  Simply put,

That’s not a free housing market; that’s a market bought, owned, and sustained by the Federal Reserve’s willingness to print up three quarters of a trillion dollars out of thin air.

Read all the details here.

Published in

Post a comment