Scott Vollmer, Other/Just Looking in Green Bay, WI

Great info... thanks. Is there a lag time for MBS purchases to affect mortgage rates???

Asked by Scott Vollmer, Green Bay, WI Wed Feb 25, 2009

I think I read that there are a big majority of the govt. purchases of MBS's ($92 bn) that are on the NY books and not closed on the Fed balance sheets which are only showing $7.2 bn. Are these still in process and not yet affecting the rates? If so, how long does it normally take, and will that have a big impact on bringing the T-bills back up and rates back down? Why is the gov. selling all the T-bills and flooding the market and driving those rates down... is it to get a better cost on the purchases??? This government and economy stuff is nearly as mysterious to me as what women are thinking.

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