MBS
Angel Oak Mortgage-Backed Securities ETF
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They make good money financing cars. Ppl have been saying for years “auto loan defaults will be like the subprime MBS all over again” but ppl can easily default on an auto loan and get their car repo’d and keep on living. Sure your credit will be affected but it’s not really going to affect the overall economy. Will probably make it to $350 soon and bounce off
Exactly , they had held significant amounts of U.S. agency MBS especially through agencies like Fannie Mae and Freddie Mac. It’s not just Treasuries they invest in , MBS offer a bit more yield, which is attractive for large foreign holders looking for safe but slightly higher returns.
I remember it's said that China actually owns lots of MBS. But I didn't dig for more detail.
They like MBS' because they usually pay slightly more and the maturity duration matches
Believe it or not they had MBS in the 1920. ALL of them blew up. So you wonder what the Federal Reserve if for.
Retail investors who had bond funds knew what mortgage backed securities were. But they didn't buy MBSs directly; they would invest in a bond fund that would have a certain percentage of MBS's. And the prospectus would talk about "mortgage risk", even. But this is not really related to the 2008 crisis, which dealt with MBS *and* credit default swaps *and* other derivatives...and a bunch of other stuff. Retail investors knew that MBS's owned bundled mortgages, made money from the interest payments, and were subject to default and interest rate risks. But that's not really different from the risks facing other types of bonds.
I was aware of MBS because my mortgage got sold several times. Someone explained that they get bundled together and sold. I had no idea of any available MBS that I could buy. I did not have money to buy anyway. When the $#!t hit the fan \~2008 I had no knowledge of Credit Default Swaps, Collaterized Loan Obligations, etc. whatsoever. We also had no idea that the credit rating agencies were playing fast and loose with bogus credit ratings. Who was to blame? I blame the spineless succubus congresscritters for failing to regulate the banking industry. My office had CNBC on all day. It was gut wrenching to watch it unfold for months without knowing how it would end. It could have ended very badly. In the end I made out like a bandit. I kept funding my 401K going to the same growth stock mutual funds all throughout. I made a boatload of money as the market recovered.
Retail investors didn't really buy mortgage backed securities. They were considered a boring bond while retail prefers more exciting stocks. The actual bond failures were mostly limited to subprime MBS traded over-the-counter (not available to retail). Look up MBB for something available to retail in '08. It did fine because it held government-guaranteed mortgages only. The real damage was done by all the CDOs and synthetic CDOs that institutions traded among themselves. Completely unavailable to retail. Institutions also used insane leverage that retail can't. Lehman Brothers' peak leverage ratio in MBS was 33x.
Great question. The short answer is that most retail investors were not aware of mortgage-backed securities (MBS) or the extent of the risk they carried before the 2008 global financial crisis. Mortgage-backed securities were primarily traded and structured within institutional circles. Investment banks, hedge funds, insurance companies, and pension funds were the main players involved. These instruments were complex and often bundled into collateralized debt obligations (CDOs), which further obscured the true risk. Even many institutional investors didn’t fully understand the exposure they were taking on. Retail investors who were impacted were often exposed indirectly. For example, if they held mutual funds or retirement accounts with holdings in financial institutions that were heavily invested in MBS or exposed to housing market risk, they would have felt the downturn through those broader vehicles. But very few retail traders were directly buying MBS or speculating on subprime loans. The lack of transparency and complexity of the instruments was a key reason why the collapse blindsided so many. The average person knew housing prices were climbing, but the financial engineering behind the scenes was out of reach for most non-professionals.
It could get pinned too that's about a 50 percent chance iv percentile is loaded. I don't see why we would rally. MBS treasuries are currently being tapered, macro looks bad, branding non sufficient with poor leadership, poor product lines with very small trends and poor affordability for subpar products. . Honestly, good luck to all, you know what they say empires rise and fall.
Didnt MBS just condemn the strikes?
We are tired. Tired of dehumanizing others. Tired of blaming others. Tired of failures. Tired of lies. Tired of deals that only benefit you. Tired of bribes. Tired of corruption. Tired of pardons for money. Tired of paying tariffs. Tired of warmongers. Tired of oligarchs. Tired of Putin admiration. Tired of MBS admiration. Tired of antagonizing Canada and Europe. Tired of chaos. Tired of extortion. Tired of Epstein. Tired of intimidation and much more. We are tired.
have owned off/on for years, great company along with DX and NLY, they are 3 residential MBS companies with high yields. Only own when most likely that 10yr yields are heading lower, then the MBS loans go up in value and so does AGNC's NAV -net asset value, and then so does it's price. With FED cutting overnight rate by 100bips in last 8 months and likely to cut more over next 2 years, the 10yr is more likely to trend down, FED is cutting due to inflation falling, the 10yr yield = inflation rate + GDP growth rate. IF both are heading lower, like now with Tariffs decreasing global demand and decreased M2 causing lower inflation last 3 yrs, since 9.1% july of 2022. Then very good time to now own mREITs like DX/NLY/AGNC. you can use any temporary rise in 10yr yields like April 6th to May 21st to buy low on AGNC It's a trading vehicle, not a long term hold when 10yr yield in a sustained rise, play the opposite side with BDCs, like BIZD or PBDC etfs
>mREIT which deals with government backed loans Don't forget to add they use leverage to squeeze out that higher yield, because otherwise government backed MBS offers lowest yields. There is a utilities ETF I like called UTG that does the same, leverages against a fairly stable industry sector. But as an investor it's important to know you are bearing this risk to capture the higher than industry standard yields.
the uneducated raging again - all the rules does, is allow bank to use now fiat reserve to invest them into treasuries - us treasuries - why? cause this will create demand and push interest down. Banks wont be allowed to invest in some MBS all of the sudden..
All 100% wrong and misinformed. * They just increased Treasury purchases $20B a month. Net rolling off capped at a miniscule $5B. Basically zero. Only MBS QT remains. * Actual measures of financial conditions remain very loose vs history. Including very tight credit spreads and lending soaring. Credit spigot wide open. * "Guidance down" but profits still extremely high, incomes soaring, ultra low layoffs, massive 2Q GDP, consumer spending soaring.
Saudi Crown Prince MBS says Israel is doing anything it can to drag the US into a war with Iran.
Israel just started bombing them again lol He’s doing MBS a favor who can’t be seen by his people approving of anything Israel does
MBS will lower OPEC when he’s requested , as he benefitted from last night as much as anyone
I was on the Street for that fiasco. The Toxic assets were sold at significant discounts and basically to other Street members. SO, literally anyone who bought was well aware of the risk. IIn less than a 5 years' time frame most of those assets were up 50% in value because they were originally draged down rather unfairly. Seasoned MBS pools that had no SUBPRIME mortgages in them were discounted somewhere in the 45% area. And hoe do I know this, I myself bought quite a few mid-90's issues at steep discounts that were yielding in the 8-9% range, and the default rates were less than10% on average.
You obviously really did not understand the ramifications of Bear's portfolio. Over leveraged at 145% in MBS, CMBS, CMO's, IO/PO's, Whole Loans, CDO's, SubPrime mgts. Things got progressively worse in that space, REPOs were requiring more and more collateral for the same money's. When Merrill seized $1 trl in assets from one of Bear's funds,in 2007, it became apparent how Bear was carrying them was less than 10% of what they were actually worth in the open market. Merrill had $1trl in assets that they finally sold off in the neighborhood of $120mm. Then in July of the same year, two subprime hedge funds had lost nearly all of their value amid a rapid decline in the market for subprime mortgages. Why don't you try and point out the similarities?
Things not looking good this morning...you think its low now, wait until you find out how underwater the 27% of properties are that have been on the market for greater than 120 days...don't forget, those are unrealised losses and what they are doing is basically keeping those properties unsold to avoid it hitting their earnings and cash lines...i can promise you that they have not reflected the "true value" of properties on their balance sheet. So to give you an example, look at some of the properties they have in Florida where they paid, say, $300k and put $30k into it and marketed for $400k. That house (now >120 days later) is probably worth $300k, if not lower, but they will probably maintain an advertised price of $330k or $350k to avoid selling at a loss and maintain their balance sheet position...its only worth less than that if they sell and prove that it is...based on their latest earnings report about 27% of their portfolio is made up of these stinkers as they went nuts buying in Florida, Texas, Georgia and Arizona....this is like the perfect embodiment of what happened with the MBS scandal in 2008. They aren't marking these properties fairly and making you think they are $200m richer than they are. What will be the catalyst? Banks/institutions pulling out even 20% of the money....will cause a domino effect that will force the sale of these stinkers to maintain liquidity and you'll see the mother of all earnings reports and inevitable bankruptcy as the rest of the banks call in their loans....another word for this dynamic? A PONZI SCHEME where losses are hidden until liquidity is crunched...it will happen in the next 6 months.
I’ve never done real estate myself but just reading about it over the years and how much work it actually is, I’d have been gone. You can still diversify and buy real estate ETFs to gain exposure to that asset class. Literally set it and forget it. Most RE funds have yields of 3-5%+ and also have a bit of price appreciation on top of that. You can buy MBS focused funds, brick and mortar triple net funds, apartment and housing funds (think Avalon), commercial RE funds…all kinds. Or you can just buy VNQ and get all that and then some with a 3% starting yield. Just have to ask yourself is the headache and work worth the bit of extra money you can make VS just buying a REIT fund or two and never having to look at it again but maybe overall make slightly less in the long run. I’m lazy so I know what I’d chose.
What are you talking about, they re-capitalised all the banks (not direct QE). And then proceeded to print 4 trillion from 2009-2015 (November 2008 a 600 billion in MBS). What exactly do you think stopped the deflation mid 2009. In total QE1 was like 1.7 trillion.
Guys... This is just continuing existing MBS and extending the runoff.
/hyper masculine surgery guy TACO to MBS "he tweeted? Dump it"
MBS trade more like bonds, they are a loan asset
"Stocks are much riskier because the federal reserve does not buy stocks." Actually, QE, in 2008 the Fed started purchasing MBS assets to ease the sub-prime strain, you might recall the "Bernanke put", those assets are still on the books.
If you really knew who I am you would be able to look up on JSTOR and read the Studies that I and a Co-worker have written and published on Risk Management. One in particular on the Failure of Risk Management mitigating the Colossal MBS debacle. AMEN and make a fortune trading CRUMBS
If TSLA got put on the MBS Saudi fund bad boy list…
Ok, I did some Gemini queries. Some posters have noted the bank likely doesn't own your mortgage. This is likely true, around 70% of mortgages are sold in a secondary market and get packaged and securitized. Those mortgage backed securities are then offloaded to investors, pensions, etc. So this is the diffusion of risk in that i would bet most of it is back in the market. As to the duration risk in those securities, the market value of the MBS will adjust based on rates, same as a bond. To answer the OPs question, the bank already sold it, Freddie and Fannie likely sold it, and by the time it is securitized the loss is basically already booked by the fluctuations of market value.
SVB bought 1.5% MBS so not great but not terrible if you believed "inflation is transitory". [The 2021 dot plot had interest rates at .25% in 2022, 1% in 2023, 1.75% in 2024 and 2.5% now](https://bondblox.com/news/fed-reserve-decision-and-dots-turn-hawkish).
They’re going to Kashoggi him so MBS and Lucid can take the EV crown
there a bunch of things wrong with OP which i pointed out in various comments, no bank hedges a single mortgage (conforming notes like OPs are flipped to fanny/freddie who securitize them into MBS and sell to the market) hedges for MBS are at the 10y amortization point (not 30, even if the mortgage is 30y, since there's always a free pre-payment option) etc, etc.
But the bank isn't preventing OP from paying their mortgage early. They just wont allow to pay less for it. Reality is that OP mortgage is already less valuable because of lower interest rate and the packaged MBS is already selling for less because of that. But if on top of that OP can sell it for less than the principal, they lose even more money. Why would anybody accept that ?
The change already happened automatically. The package of many mortgages the bank made when interest where lower are already less valuable and trade for less. But they don't trade OP mortgage separately so OP can't buy it. What OP can buy still with his money is an MBS ETF that would yield more than 3.2%.
The highrise hillbilly is gonna be doin the pants shitting tantrums about this fake news. Gonna go make MBS the Fed Chair then we'll get to eat tariff cheese cake for dinner forever and ever.
Mortgage rates are a simple spread over the treasury of comparable yields. It's calculated synthetically based on how long the mortgages will take to turn over. But FNMA doesn't decide any of that. Originators set the rates based on what the MBS sells for. FNMA can influence the spread by raising or lowering the Fee it charges to guarantee but has no control over what the actual rate. Because FNMA doesn't set rates or benefit from them going up or down any influnce they have would be toward decreased rates. They get a fee on every loan so more loans at lower rates is when they do best.
Remember the scene in Big Short when MBS bond prices were skyrocketing when mortgage delinquisies are heading up ? This is exactly whats happening in stock market now. TSLA sales went down by 50% & the stock is up by 6% today. Guess what happened in the end ? The market tank & retails were holding the bag 
I saw a similar thing go on with SoftBank a few years ago when Son was in real trouble. On the release of bad news, the stock would dip at first and then leap up and burn all the shorters. I concluded he was using his Sovereign Wealth cash pile he got from Prince MBS to crush opposition. Musk has a similar cash pile.
Fed bought a trillion $ worth of MBS after the GC, then another trillion after COVID. Takes a long damn time to sell that much stuff off w/o crashing things.
Fair point, but unresolved doesn’t always mean unmanageable. The Fed and Treasury have backstops in place, and most of the toxic MBS have been ring-fenced or absorbed. It’s a slow clean-up, but not a systemic threat like in 2008.
Long MBS terms are normal; the Fed’s unwinding, just not flipping the switch.
2008 was never resolved fully. COVID was a blip on the radar. MBS swaps are still open. The longest dated one I’ve found expires in 2034.
Trump is living in an alternate world - an online one and the real one. He says what he likes in the online world but consistently fails to carry through into the real world because he is a fundamentally weak person. He worships Putin, MBS, Xi and thinks by acting tough online, he emulates them and is a part of the click. He could be the most powerful of any of them yet fails to make the moves he needs to because he is weak. His desperation to be liked is his flaw and he just does not want to be disliked, even by them. "I've had a great relationship with Putin for years!" Really? How and where? Quite sure the next News Conference will be an about face to this and will fail to leverage any kind of position that he actually has, not what he thinks he needs / wants.
Once upon a time, three little piggies wanted to build houses. They asked mama bear, papa bear and baby bear for a loan. Papa bear loaned them the money, mama bear insured that mortgage and baby bear packaged that mortgage into an MBS. Then the three little bears sold the MBS to a big and optimistic bull. That bull was very happy, because it was always optimistic. But a wolf came and huffed, and puffed and poof, one of the three little piggie houses was blown away. And then he wnent further and huffed and puffed and the second of the three little piggie houses was blown away. But when he huffed and puffed on the third little piggie house, it was made of stone and the three little piggies were safe. One day, papa bear noticed: Someone has not paid their mortgage installment. Mama bear noticed: Someone wants to get their mortgage insurance. And Baby bear said: Something in my MBS has started smelling funny. Now there was a big commotion. Everything was suddenly worthless. But you see, the bears and the bulls and the wolves were all very important. So they went to the Lion. And the Lion heard them and decided, to save everyone. Well, nearly everyone. They took away the house of the three little piggies and gave it to the bull, because they could not pay their mortgage. And then they roasted the three little piggies and had a feast. And in the end, they were all nicely fed and very happy. At least everyone, who was still there. And the dead don´t count.
Actual journalism gets you sent to the gulag comrade. Better to post fluff pieces that don't affect your career long term. Remember we locking up college students right now. Not too long before we go full MBS on a journalist.
also can control mortgage rates through MBS purchases which can be seen on feds balance sheet.
20 years? So before the MBS crisis? Or did you buy right after?
u/Spear_n_Magic_Helmet additionally, they have basically ceased QT for US Treasuries (only MBS remains). They recently increased purchases of Treasuries by $20B a month. Additionally, they have incredible flexibility to change the composition of their balance sheet from short to long duration. Thus driving down yields if they needed to.
Quantitative easing would be the ELEMANTARY way out to fix today's issues. In the long term, it causes more issues than fixes. So, Treasury will auction Paper to the Primary Dealers and the General Public so the Federal Reserve can buy it back. The last time this happened, only Primary Dealers were a part of the buy-backs. So the Fed bought back Treasuries and MBS, that the Primarys went out and bought from the Street, customers or their own accounts. When you are selling Billions to them, even a $.05 gain per million adds up. $5 trillion the last time.
The most recent round of quantitative easing (QE) resulted in a significant expansion of the Federal Reserve's balance sheet, initially stimulating the economy but also contributing to higher inflation. The Fed's response to the COVID-19 pandemic involved purchasing a massive amount of assets, primarily Treasury bonds and mortgage-backed securities, which increased its balance sheet from $4 trillion to nearly $9 trillion. This, coupled with a sharp rise in interest rates, led to the Fed experiencing operating losses in 2023 and 2024 and is expected to continue through 2028. By the way they still own most of the MBS Products they bought. Another impact was the affect on CORP. Bonds. With substantially lower rates Corp. Bond issuance rose and that money was basically used for daily operations. Researchers from Liberty Street Economics found that the impact on overall employment varied across regions.
I feel that's just looking at it with rose-tinted glasses though. Back in 2005, you could've said the same about the MBS market. High returns, high profits, historically secure, etc. However when you looked into the MBSs that were being traded you would've seen that they are actually worthless. The thing about crypto and the decentralized blockchain is that it was the first real new thing in the internet age. i.e. Something like this 40 years ago (yes I understand it wasn't possible without the internet, just bear with me) wouldn't have gotten this much popularity since media, hysterics and FOMO weren't mainlined into your brain through your phone screen. The thing about gambling is that there's no tricks; you know the rules of the game and you know the house has better odds. This transparency means you can't gaslight yourself into thinking there's skill involved in playing roulette. Also, the possibility of earning money is guaranteed; its not guaranteed you \*will\* earn money but its guaranteed you \*can\* earn money. Crypto however does not have this guarantee. The fact I ask a question on a sub with 3M people, and not one person can give me a real answer of what intrinsic value crypto has now or in the future is startling. The value keeps rising, and people have no clue what they are \*actually\* buying. When you buy shares, you can look at the actual value of the firm and its assets; even in the complicated age where the big firms have lots of value in IP instead of physical machinery (the latter having a much clearer value than the former) you can still have a notion of the value. Now that firms like MSTR are loading up on BTC, the next crypto bear market is going to be catastrophic because its no longer dominated by single players but by firms who could dump billions in BTC in a second.
Mortgages are sold by banks to investors in mortgage back securities(MBS). Banks do not like to hold onto mortgages as they rather sell them so they can lend the money out again. Those securities have an asset value. So if you can buy a MBS for 7% in the current market the old ones at 3% need to be devalued so that they give the same return as a 7% one. Since he rates are so low it becomes a huge problem because you need to lower the dollar amount of the MBS significantly so he the same return. This same concept applies to bonds. Sure the banks can hold them to maturity which a lot of banks have said they will but that doesn’t change the fact that the asset is worth 30% less on the open market.
I don´t know. They might just have made a different movie. Along the line of "To big to fail." Now that I am saying that. Who else wants a tv show dramatizing what really happened during big financial crisis events? Season 1 the MBS crisis to draw in the public, then all the others, No need to do it in chronological order, since they don´t build on each other.
MBS YOLOing his personal fortune on 0dtes? Sure. PIF, Saudi's sovereign wealth fund? Probably not.
So first, I posted M0 because you mentioned the Fed printing money. The Fed "printed money" by buying MBS and crediting bank accounts at the Fed. M0 captures that. It's not at all correlated with the market. What you've posted, total liabilities, may well be correlated with the market over the long run, but in a very coarse way. Total liabilities increases year over year regardless of whether the market was up or down that year. It's not going to tell you where the market is headed at any given time.
MBS backed, can’t go tits up.
It’s a bubble. Buy 50 million in swaps on the MBS
They were buying MBS, you really think they will let 30Y go to 6, when majoritiy of borrowing (RE, Ts) are 20Y+?
credit agencies were really quick to downgrade MBS and all
Prolly bring out MBS at gun point and let the world know he is investing 50 trillion into nvda or something He clearly cares about the market
Ah well, hmmmm, Sooooo, uh I mean….🤫 In 2007-2008, Moody's, like other credit rating agencies, assigned high ratings to many mortgage-backed securities (MBS) that later proved to be overly optimistic. At the time, they rated a significant portion of these securities as AAA, the highest rating, which indicated a low risk of default.
Warren Buffett owns some large percentage of US debt through Berkshire. Warren owns Moody’s. Warren just retired. Moody’s, the last holdout, felt free to downgrade. I’m just spitballin here. I think maybe Warren had more control over his portfolio companies than his folksy image would have you believe. I think he used Moody’s to juice ratings of MBS into the GFC, and I think maybe there was pressure within Moody’s NOT to downgrade the rating of sovereign debt Warren held…
I saw a similar thing with SoftBank and the only reason I could fathom was that he was using a cash pile from his sovereign wealth fund (gifted by Prince MBS) to repeatedly smash shorters in a squeeze and drive the stock price up. Elon might be using his cash pile the same way. Burn shorters often enough and they refuse to play.
As someone who lived through the 2001 and 2008 crashes... it's the same story every time. Everyone is enjoying the beach and they figure it's so nice out how can a tsunami be on the way. And surely if they were in danger the authorities would tell them to leave (bush/bernanke told people to buy houses the week before the 2008 MBS crash). Anyway, when the tsunami hits... holy shit the panic. Everyone is glued to CNN and CNBC all trying to figure out how no one knew this was coming. As a species we're pretty stupid and the stock market takes advantage of that. The smart ones get rich from these crashes.
As much as I would like to add weight to rating agencies, I wonder if they still have the same value specially after finding out that these ratings can be brought and paid for like how CMBS and MBS securities were kinda rated during 08-09.
Moodys is the best. I remember when they graded MBS as AAA. Nothing gets past them and their deep dives.
Moody's rates subprime MBS as AAA in 2008.. for it to lose over 70% of its value in 2 years 
Saudi used to be like Qatar back in the day, but under MBS theyve gone more in the direction of UAE. Theyve still got some issues, like the extrajudicial killing of Khashogi, but their overall trend is positive
While Moody’s has a point about US debt and deficit, let’s not forget these chuckleheads gave AAA MBS that caused the Global Financial Crisis
Trump received a pearl necklace from MBS looks like
He's trying to be a despot, he envies the power that people like Putin, MBS have
Lol. Actually I think MBS might genuinely believe this is a way to modernize Saudi Arabia, it just seems odd and unlikely to work
It doesn’t palantir is like 500 and shits still going up they’re trading on vibes. Tesla and palantir CEOs however were seen speaking directly with MBS
They didn’t make their money by themselves is the point. Didn’t build a company or make it themselves for the most part so that wealth shouldn’t be counted. But I’ll provide the mainstream answers: Why Vladimir Putin Isn’t on Billionaire Lists While some estimates suggest that Putin’s net worth could be as high as $200 billion, these figures are speculative and lack concrete evidence. Forbes has stated that it cannot verify sufficient assets to include Putin in its billionaire rankings. His official disclosures report modest earnings and assets, but investigative reports suggest he may control significant wealth through proxies and hidden networks.    ⸻ 🏰 Why Mohammed bin Salman Isn’t Ranked As the Crown Prince of Saudi Arabia, MBS’s wealth is deeply intertwined with the Saudi royal family’s assets and the state’s resources. Estimates of his personal net worth vary widely, with figures ranging from $5 billion to $25 billion. However, the lack of transparency and the difficulty in distinguishing personal assets from state-owned wealth make it challenging to accurately assess his individual fortune.
And they would have gotten away with it too, if wasn't for those pesky MBS's!
Oh, he gave the 9/11 host country .6 trillion in weapons to make Saudi oil great again bc MBS gave Jared 2 billion? What’s with trump being so cheap in the bribe/benefit ratio? He’s like bribe temu. Oh he doesn’t math good? Makes sense. #TariffWokePenguinsBigly
So is everyone over there going to an MBS Freak Off tonight? Don't miss out on the Sheik Down! 
Did MBS drug Donnie to make him fall asleep during the presser? I hope secret service is watching out for bone saws.
And that murderer MBS greeted him when he landed yesterday. It’s hard to keep up with all the corruption.
If you negotiate with MBS, the winner will always be MBS…
MBS please pump GOOG instead of PLTR 
Mortgage backed securities (MBS) - too risky with the inflated home market? Or am I still fighting the nightmare of 2008? I've found some really nice Bond Funds (focusing on 1 thru 5 year defined term or 1-5 year maturity funds) with good returns and AA+/- average quality. But when I look at the portfolio, they have a good bit in MBS/ABS/Mortgage Agency bonds. Am I living the last "war" and should reset on MBS'? 1. The home market seems inflated, possibly to the point of a bubble. If we do have a recession, I think it will burst. Rating MBS' AA-BBB might be overestimating quality. 2. And maybe the most influence on me, the 2008 crisis with MBS bundling of really unknown quality and CDS' makes me stay away from (or at best, heavily discount credit ratings) for funds with heavy MBS' portfolio.
"And now to conclude, I will fellate MBS while at the same time tickling his balls."
I wonder what MBS actually thinks of hm
I'm 98% sure that MBS can speak fluent English, but just chooses not to for some reason.
🥭 already brought his chosen pumps to make MBS’s job easier
Trump and MBS: “JD, why don’t you go pay King Salman a visit 💀”
Did Jensen sign MBS boobs or something?
AMD holders really gotta ask themselves if they honestly think MBS is gonna buy billions of infrastructure from a her. Seeing trump, MBS, and Jensen chilling and shaking hands, laughing. Was cousin Lisa even allowed in the room?
Coercing MBS to get up on the world stage to help solve Gaza, Iran, China and Russia. Guy has an ego bigger than Trump.
Musk shaking hands with MBS? Tesla 350.
Shorting when they are meeting with Saudi’s MBS to discuss investments? You really are a true regard. Thanks for your service. https://preview.redd.it/i0m2mu01460f1.jpeg?width=1170&format=pjpg&auto=webp&s=194ae0173b9d1d50d8346a0d6eb54e474cf29a7d
Not saying you are right, but I think people that think Trump's admin will fail no matter what in terms of the stock market's valuation are also being kind of ridiculous. I'm still bullish until proven otherwise after that Zweig breadth thrust hit the other week. That said, I'm still thinking mainstreet might not have the best employment situation coming up. But traders that want to make money have to remember that in this QE economy, employment going down the toilet won't mean anything unless it's very extended, especially with not only looming QE whenever needed, but also the guaranteed MBS in case some people do need to sell/foreclose on their homes (inevitably to one of the large investors that's been stacking homes.)
So what you just described is almost exactly how China handled the situation. Except they executed some of their bankers. The only thing I'd say about 2008 is that it was really the result of the dot com crash in 2001... when that bubble popped, they simply created the MBS bubble, which is what blew up in 2008. Just like the current "everything" bubble is the result of the 2008 crash. But yes, 2008 was the last chance to turn back from the insanity of a runaway debt-based economy and the powers that be chose not to turn back. So here we are.
Gold is already over 3,000. Not sure how much of this is op's write up, but at least it's mostly accurate as to what is going on. It fails, however, to mention that you could go back to 2008 and it seemed nothing could save the world from imminent collapse. And yet, by 2010, after putting all the toxic MBS on the gov and feds balance sheets, everything went back to normal. The cost of 2008 was that we have all been living in a world with a lower standard of living than we should otherwise have had (except the rich, they've been getting richer and richer). And that lower standard of living led to people voting for the Orange Mango. So how we handled 2008 is what gave us Trump. We'll probably get through this crisis, but the cost will be further erosion in standards of living. Does that lead to people finally voting against capitalism or embracing a revolution? Maybe. But it's just as likely they'll simply accept their fate as serfs to the rich in some dystopian landscape where the US becomes more like a third-world banana republic.
This is not QE, this is the Fed replacing treasuries that are already falling off their balance sheet (maturing). If they were buying more than that, it could be called QE. Also consider that JPow has already given forward guidance earlier in the year and in 2024 that they would like to move their balance sheet holdings out of MBS and has also made comments that further balance sheet roll off is not planned for now. So, putting two and two other if the Fed plans to downsize MBS holdings while keeping the balance sheet more or less constant, that means more treasury holdings.