If You Are Not OUTRAGED, You Are Not Paying Attention

July 8, 2009 · Posted in News For Homebuyers

Hey, it’s a great bumper sticker quote, but it’s also REALITY. It’s time that we, as Americans, get OUTRAGED. To be honest and up front with you all, I am what most would consider a die-hard Democrat. Spending money=Yay! right? Well I have complained about this particular ‘phenomenon’ before, and here I am again. Take a look at this: http://www.newyorkfed.org/markets/mbs/index.html

To put this in terms we can all understand, the Federal Reserve MBS Purchase Program has WASTED (that’s right, WASTED!) 621 BILLION dollars since the beginning of the year, and will WASTE approximately $640 BILLION more. Now, why should this anger us all? Well for one thing, it’s 10 times as much as our annual Federal education budget- in SIX MONTHS. That ticks me off. But to put this bluntly, the Fed is ‘Pissing in the wind’. Can I say that? I guess we’ll find out.

Let me explain- What is the money being used for? To purchase Mortgage Backed Securities, which in my not-so-humble opinion should not even exist. Period. See, the Fed thought that buying the MBS would drive rates down and provide stability. It has done everything BUT. We have seen more volatility, and more wild swings than ever. Instead of letting the market take it’s course, the Fed has decided to print up some fake money to buy some fake pieces of paper to accomplish what exactly? Sorry, but letting investors determine mortgage rates is like asking Michael Jackson’s monkey to run the rides at Neverland. BAD IDEA. Did Michael Jackson die by the way? They keep playing his music on the radio….

Back to the seriousness- Can we do anything about this travesty? Probably not. But the next time you get into an argument over how our government spends money, just remember the Fed is printing 1.25 TRILLION fake dollars this year to stuff in the pockets of moronic investors. If someone could explain to me why it’s a good idea to have mortgage rates determined by a bunch of fickle numbskulls, I’d really like to know. Bring it on.

IF YOU ARE NOT OUTRAGED, YOU ARE NOT PAYING ATTENTION.

In my next blog, I’ll explain why haggling for a ‘rate’ is a complete waste of time.

Click here to view the embedded video.