http://www.bloomberg.com/news/2012-12-24/fed-flummoxed-by-mo...Policy makers are disappointed that lower yields on mortgage-backed securities haven’t led to more savings on home loans after the Fed expanded its balance sheet to an all-time high of almost $3 trillion through bond purchases. Bernanke this month called the trend “unfortunate,” and the Federal Reserve Bank of New York held a workshop to examine the issue. [...]“The Fed is pushing really hard to try to get the mortgage rate down,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. “There just doesn’t seem to be much of an inclination on the part of banks to get out there and beat the bushes.” [...]That has left the spread, or difference, between so-called primary and secondary rates at about 1.1 percentage points, compared with less 0.7 percentage point in March and an average of about 0.5 percentage point in years before the credit crisis, according to data compiled by Bloomberg. In other words, the too-big-to-fail banks, now bigger than ever, are keeping the difference in their pockets, not yours.
In other words, the too-big-to-fail banks, now bigger than ever, are keeping the difference in their pockets, not yours. Perhaps understandable, given all the multi-million and -billion dollar fines for what was essentially paperwork violations ("robo-sighing") on foreclosing mortgages on people who had stopped making payments.Fancy that, when you (the gov't) beat the sh*t out of somebody, they turn un-cooperative.
Fancy that, when you (the gov't) beat the sh*t out of somebody, they turn un-cooperative.Until, of course, they return with the club.Fed: What's your name??TBTF: Kunta Kinte!Fed: What's your name??TBTF: Kunta Kinte!Fed: What's your name??TBTF: Kunta Kinte!Fed: What's your name??TBTF: tobyDon't fight the Fed.
Or in other words the folly of the Fed continues to be revealed when businesses refuse to behave as stupidly as the government apparently is more than willing to do.
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