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...Read More
Mortgage Rates: Moving Up Everyone in the housing business seems to be counting down to the approaching deadline with baited breath. No, not April 30, when the home buyer tax credits expire. March 31, when the Federal Reserve stops buying mortgages and mortgage-backed securities — reportedly, anywhere from $10 to $25 billion, per week, since...Read More
Here We Go Again? While early investors savor their gains and see their money multiply, those still on the sidelines must consign themselves to earning less than nothing on their savings. At first, it’s easy for prudent savers and investors to tune out the “siren call” of the hot market du jour, and “just say...Read More
“Surge” or “Stay the Course?” Depleted and demoralized by the huge sums it has already spent (and arguably squandered) trying to stabilize a still-hostile environment, the U.S. must decide its next move. The three choices are to: 1) double down (“surge”); 2) “stay the course”; or 3) declare victory and get out. U.S. forces in...Read More
The Fed and Interest Rates If you follow markets — stocks, housing, you name it — two things catch your attention: too volatile, and too calm. The former is usually associated with rapidly changing, “macro” events that the markets are struggling to make sense of; the latter, somebody’s got their “hand on the scale” (at...Read More
Credit Card Bills Trump Mortgage Payments I attended a private dinner this week where the featured speaker, a senior executive at FICO, offered a wide range of comments. Since the talk was off-the-record, I won’t mention the individual’s name, but the insights were fascinating. In a nutshell, FICO is observing a sea change in how...Read More
