Testing “the Bernanke Put”
So, the Federal Reserve’s $1.25 trillion program to buy mortgage-backed securities officially ended yesterday.
Next up: home buyer tax credits, scheduled to expire at the end of the month.
But are the Fed — and U.S. Treasury — really done?
In an era of too-big-too-fail, “the Bernanke put” (preceded by “the Greenspan put”), and continued federal stimulus, it certainly seems more like an interlude than the end of an era.
If the housing market reacts badly, it’s not to hard imagine further aid efforts materializing (no doubt in different guises).
