Kyle,
To continue your point, cash buyers are also a larger proportion of the current market than ever before (scooping up bargains we assume), so that would drive a further wedge into the gap between total mortgage origination and Fed purchases.
I always prefer to err on the conservative side and I think that’s safely been done here.
Thank you for directing me to your paper in Huffington Post. Very well done and I encourag everyone here to read it.
On the flip side, there are still many people that are putting far less than 10% down. When we purchased our house this summer, we went with a conventional loan, which required a 10% downpayment (which we did). (We’re first time home-buyers BTW). We were also offered an FHA loan, which would have required a 3.5% downpayment. This struck us both as insanity. We were shocked that this was still an option. I guess we (as a country) haven’t really learned much. But I bet there are plenty of people taking that option.
It is like in ex USSR, ex Yugoslavia and any other communist country; individual can not be owner of home or any real estate. He can only be sub tenant where state is one and only householder and landlord. This monopoly of state was acquired through expropriation of real estate from citizens. This expropriation was sometimes followed by execution (and "sometimes" is understatement). It is nice to know that capitalist system of US&A is more humane; first banks land you money they don't have, then they suck you dry through interest, when you can't pay mortgage they consficate your home, then since the real estate is now worth shit because banks gave too much loans, federal government and Federal Reserve come in and buys mortgages from banks with money they dont have. And where from comes money of federal government? From Federal Reserve! And where from comes money of Federal Reserve? From printers. And who is controlling the printers? Federal government. And who is controlling printing of money? Federal Reserve. WTF?, that life baby! I'd like I could menage bank and economy like that, but if I print money (US dollars) without cover (or even with) then I'm a criminal! If they print money, they are bankers! This is crime of the millenium! It seams to me that in USA there is same result with real estate like in communist countries although the path to that result was somewhat different. Communism and capitalism both strive toward the same goal, and that goal is economical enslavement of society and people by any means necessary and available, in any given moment of hystory.
THROUGHOUT HISTORY POWER WAS, IS AND WILL BE IN THE HANDS OF THOSE WHO CONTROL ECONOMY. ONLY INDIVIDUAL THAT IS TRULY FREE IS ONE THAT IS ECONOMICALLY INDEPENDENT AND ONLY STATE THAT IS LAND OF FREEDOM IS ONE WHOSE CITIZENS ARE ECONOMICALLY INDEPENDENT INDIVIDUALS. AND ONLY TRULY FREE PEOPLE CAN ELECT GOVERNMENT OF THE PEOPLE, BY THE PEOPLE & FOR THE PEOPLE.
Hrvoje Stanojević
Enough said, good luck to You all and live long and prosper.
Expands information provided about the policy tools the Federal Reserve has employed to address the financial crisis. Includes a detailed explanation of the Federal Reserve’s balance sheet, discussion of Federal Reserve risk-management practices, and information on the types and amounts of collateral being pledged at various lending facilities. Mortgage Calculators