Comments by "worn down" (@worndown8280) on "Something INSANE is Happening in the Housing Market" video.

As banks eat losses on all the bad loans they will need to sell more MBS's. But in order to compete with the Feds massive dump they will only be able to sell them at a loss so the banks will have to raise the rates on the debt they loan out or book the losses. They wont take that hit. The banks will pass the cost on to the lendee. Regardless of the Fed rate, they will have to increase lending rates for all capital loans. If the Fed rate gets higher than 3.5% thats going to make if very very difficult for Congress to write budgets like they have been doing. That means a huge draw back in Federal payouts to states, individuals and corporations. That alone would be enough to cause a serious recession, but we have more than that to look forward to dont we.
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