Who will buy mortgages?
From a friend…
Interest rates matter but a broken bond market matters too. There is a role for government during a market failure, but government as the only buyer over 10 years is a national liability and a failure of imagination.
Bernanke’s defining question remains – what’s this stuff worth? When there are no willing buyers you don’t know. ICE can solve that problem and Realtors can be part of the solution.