From the excellent econ blog Wasatch Economics
GSEs and the housing market
The only thing holding this whole house of cards together is the fact that the Chinese need us to buy their stuff; so the Chinese central bank is piling up US Treasuries which is keeping a lid on long term interest rates. The carnage that would result if the yield curve reverts to a normal shape is pretty scary…
Wooooo!
Wednesday, May 09, 2007
Some Harsh Words About Mortgage Bonds To Keep You Up At Night
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