Does the Fed Hold 10-Million Mortgages?

So the Rich Get Richer…here’s how.

As I have been telling you, the Fed is pumping money creation at a 10% annual rate (M1 Seasonally adjusted H.6 Money stocks) while supposedly running a responsible center bank.

The reality always was that the Fed wouldn’t do anything prior to the election, because we’ve been saying, because the pseudo-libs who are mostly D’s know which way the bidding will run in November.

As a result, Asia was up overnight, Europe is following suit.

If it seems like the markets are on crystal meth, it’s because the Big Boyz at the top are having a field day while the distractions play out (Charlotte, Tulsa, Syria etc.) and the twin illusions of a functioning democracy and an honestly priced market play out.

The Considerate Analyst (I’ll play that part) tripped on this part of the Wednesday Fed statement:

“The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well under way.”

Yeah, been a while since we looked ate Fed-held MBS. (Mortgage-backed securities)

People tend to forget that the Fed (going from memory here) has what? Almost $2-trillion of mortgages they own as fallout from the Housing Bubble Collapse.

I kid you not.

According to the Fed’s own balance sheet over here, they’re holding as of last week $1.763 TRILLION of mortgage-backed securities.

Since MBO’s is just a collection of mortgages (discounted to perform like a bond, but they’re not), we can take a wild stab at just how much real estate the Fed owns by dividing their Big Number by the average home price in America.

Rather than wait for this month’s real number (due next Tuesday from the Case-Shiller, S&P, CoreLogic, and whoever delivered the bagels), we will estimate using $175,000 per mortgage. (That’s probably high…but follow my core logic, lol…)

Divide this into the Fed MBS dough ($1.76 Trillion) and we are nudged to conclude that the Fed is the mortgage holder on how many homes?


Yep: Fed seems to own 10-million homes which would make them what, the biggest real estate owner in the world?

That’s what it looks like from here.

When does it all get marked-to-market and what are the default rates and are they foreclosing on poor-pays….and….

Wait! Nothing to see here folks, just move along. Forget I mentioned it.

It’s maybe a couple of the clay feet under the economy, though, from where I sit.

Distracted Voting: Charlotte Smolders, Tulsa Next?

To be sure the incidents in both Tulsa and Charlotte are regrettable and sad.

But they are also – along with the re-fire of conflict in Syria – oddly timed.

That is because Monday night (9 PM to 10:30 PM) we are scheduled to see the first presidential “debate” although the format will be pretty lame, from what I have read so far.

Not that it will matter: The American public has been conditioned to accept third-party accounts of what happens in politics, despite having seen the reality as little as a minute or two earlier from the candidates themselves.

Elaine and I have been endless amused (did I mention disappointed?) by the caliber of the “kids” on the MSM. We would watch Trump or Hillary speak. Then, biased talking heads would come on and allege the candidates said this, or that, when nothing of the sort was ever uttered.

Poster Kids for Bias.

There’s a reason why the MSM is losing it to the Alt-Media: The MSM lie. No kinder way to put it.

Still, even the well-bribed MSM (which is what we consider huge national political advertising buys – bribes with clothes on) can not be trusted with something as critical as throwing an election.

For that we cue other distractions.

Take the female cop shooting the black fellow up in Tulsa. We are confident that there will be more trouble in Tulsa by simply looking at the travel plans of Al Sharpton who is organizing a “day of justice” for next Tuesday.

Would you take a nickel side bet on “cutaway for live coverage” of either Tulsa or Charlotte on pseudo-debate night?

Not that the debate itself will matter.

All it will take Tuesday will be the MSM passing-off Hillary as the “winner” and Trump being labeled the “loser” to bump Clinton II (the unimpeached one) back up to top the poles.

Even THAT may not be enough: So let’s resume bombing – in support of ISIS – in Syria.

There is a problem with this – and yet-another one the MSM has screwed the pooch on: Al Nusra and ISIS are both attacking the Shi’ite Assad regime where they can – and we have what’s perhaps best described as a schizophrenic foreign policy break going on.

At the State Department, the nasty nest of neocons has yet to renounce regime change while at least on the public face of it, the American public is being told by the Golfer in Chief that we are “fighting ISIS… “ No, not if they’re near Assad…

Which is why when stories about the latest air strikes come out, most neglect to mention whose jets are bombing during the ceease-fire (ours) and the whole thing slides into the fog of war.

Here is a fine example story of what I’m talking about. Eventually, way down deep in the story, your read that:

Humanitarian deliveries had been a condition of the truce, now in tatters, negotiated by the White House and the Kremlin, but the government of Bashar al-Assad has consistently refused to allow aid into besieged eastern Aleppo. A US airstrike during the truce also inadvertently killed more than 60 Syrian army soldiers, prompting condemnations and fury in Moscow.”

This is not to be critical of the reporter, certainly editors play into this. Besides, there’s fewer of them to influence. Still, the point is that WE – the USA – violated the truce/ceasefire.

One clear-cut reason we would do that kind of thing? The Obama administration is still tied to the Clinton/Bush/Cheney/Obama neocon scum who have lost half a dozen countries due to their bankrupt policies. (Libya, Egypt, Yemen, Afghanistan, Iraq, and now Syria…)

Arab Spring sounded good in headlines, but it’s about as durable as Styrofoam which is what the post-modern “set” is made of.

Depending on how the other distractions work out, expect Syria to escalate front and center if the other distractions don’t get enough traction and Trump continues to actually pose a threat to the powersthatbe.

Don’t think we’re really THAT distracted? Well, Google News search shows 4.58 million page hits on the word [Jolie]…and that’s the pits, is it not?

Why the Market Rally?

Crack? Payoffs? Free Money? Don’t ask me.

Still, it’s odd to see when the Chicago Fed National Activity Index came out this morning:

“Led by declines in production-related indicators, the Chicago Fed National Activity Index (CFNAI) fell to –0.55 in August from +0.24 in July. All four broad categories of indicators that make up the index decreased from July, and all four categories made negative contributions to the index in August.

The index’s three-month moving average, CFNAI-MA3, ticked up to –0.07 in August from –0.09 in July. August’s CFNAI-MA3 suggests that growth in national economic activity was slightly below its historical trend. The economic growth reflected in this level of the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.”

No sir, that doesn’t sound like a recovery to me, but I’m a crazy man in the Outback.

Futures are up 68. Our Peoplenomics Oscillator was right…again.


Thursday is garbage day here at the ranch…so I think I’ll go play in the street now.

More tomorrow…see you then.


Does the Fed Hold 10-Million Mortgages? — 17 Comments

  1. About All Sharpton: If there are so many racist, murdering cops, why is Al Sharpton still walking around?

  2. My husband speaks several languages, including Russian and German, and reads the news in several languages/sources every morning.

    Yesterday one of those sources announced that Russia had told the U.S. to expect EVERY foreign plane over Syria to be shot down.

    Haven’t seen it covered anywhere else but will be interesting to see if it actually happens.

    • Interesting like watching a slow motion train wreck? (You know like when something horrible is a about to happen . . .)

      But I did read somewhere that they are trying to establish a no-fly zone over the country – which in my mind IS NOT going to happen . . . this whole thing has been badly botched – Assad is insane, Putin is flexing his ‘Vlad the Impaler’ muscles, and Obama was trying to be nice and didn’t have much of a ‘step-up’ plan. He needed either to withdrawl or make a formal declaration of war . . . civilians always get the shaft.

  3. Did the train leave the station without me and I’m holding a paid ticket.
    For real now, has WWIII started, but just wasn’t announced (presidential election).
    Or is it still tit-for-tat.

    • I don’t think they would ever let anyone know ahead of any major catastrophic event. thats why we read and listen to the news check out urban survival and backdoor survival.. George and gaye keep a close tab on what is going on in the world giving all of us a educated idea of what to expect. the mass hysteria would be uncontrollable for them to announce anything like that.. instead they would wait till the last minute to announce it..

    • Time to cue ‘Countdown to Looking Glass’ (1984,HBO) and stock up on welder’s glass (for the bright flashes). I would advise anyone to not live in, near, or downwind of any major city, seaport, or military installation. One must consider that the PTB might adopt a scorched-earth/sour grapes policy of ‘if we can’t control them, we’ll destroy them’. Uber-rich SOB’s have provisions & places of safety/survival already arranged for them & theirs.

  4. I lack the emotional energy, physical energy and spare time to watch msm news or read much of their text with fake pictures. But it has come to my attention that looters are ransacking Charlotte, NC.

    Are any of the usual suspects pointing out that stealing big screen TV sets, iPads, etc. is a counterproductive way to protest alleged wrongful homicide by police? In other words, “I was so outraged that I stole $5000 worth of entertainment technology to protest the murder of black people” is NOT a way to bring the majority over to your point of view. More likely it is a way to increase economic and racial divisions, and worsen prospects for a bright future wherever this happens.

    Recent polls have found that teens typically think the Blacks are between 45% and a majority of the population. This is due to their high representation in things like sports, commercial TV, etc. Leaders fomenting looting and racial assaults as an appropriate way for 15% of the population to redress their grievances is crystallized evil, IMHO. DR. King was correct.

    Starting a war they can’t win serves only the psychopaths, and true leaders will say so. Looting is neither a sustainable lifestyle, nor any true form of protest. And eventually, it leads to mass killings if not stopped.

  5. Your BOT (Blow Off Top) formulae was and is still intact. We watch and learn. Keep up the good work. But a BOT itself can be formulated through USD monetary policy. As we saw, market uptick comes with declining USD against the basket. So, “is it really real”?

  6. Hello Mr. Ure Way back in the early 70’s Hank Kissinger had a meeting with the king of Saudi Arabia [was it King Fahd? -can’t keep my kings straight]. Shortly after that we went off the gold standard and the petro dollar was created. Do you think it’s possible that all this turmoil and chaos thereabouts is because we promised them the caliphate if they lay off on Israel- as well as buy our T-bonds? Who better to become Caliph than the protectors of the holy cities of Mecca and Medina? This conspiracy could somewhat pre-date US involvement and go back to the creation of Saudi Arabia and Israel by the waning British Empire.
    Just a wild speculation, but it would explain a lot.
    Keep up the good work.