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xxk1rv13
Posted: Tue 9:03, 02 Jul 2013
Post subject: when the Fed buys MBS
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The Fed's QE strategy for the economy is two pronged: First,
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, when the Fed buys MBS, it pushes down interest rates for mortgages and helps prop up housing values. Treasuries and MBS and pushes investors into stocks and higher-yielding securities like corporate and municipal bonds. This causes those assets to rise in value and it generally creates a "wealth effect" for those who own financial assets..
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