Bernanke Says Fed Will Do What It Can to Support Housing

[BAllen]

Summary:

Bernanke creates money, buys toxic mortgage-backed securities from JP Sachs. In return, JP Sachs buys US Treasuries with the proceeds. The Fed can now sit on those mortgages, and make sure that those houses do not go back into the general housing market, thus constraining supply, and artificially propping up prices.

Kinda reminds me of the DeBeers diamond scam.

 

[Brian4Liberty]

Kinda reminds me of the DeBeers diamond scam.

Yep. Manipulating supply is much easier and common than attempting to effect demand.

 

[Brooklyn Red Leg]

We need housing prices to fall to more affordable levels. People are making less money due to the manufacturing loss, where they are more into lower wage retail jobs.

Of course, but that ain't gonna happen as long as we have a distorted market via the Central Bank.