{"id":674985,"date":"2010-02-24T13:05:00","date_gmt":"2010-02-24T18:05:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/so-ben-bernanke-just-admitted-the-whole-mortgage-backed-securities-question-is-a-joke-2010-2"},"modified":"2010-02-24T13:05:00","modified_gmt":"2010-02-24T18:05:00","slug":"ben-bernanke-just-admitted-the-whole-mortgage-backed-securities-question-is-a-joke","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/674985","title":{"rendered":"Ben Bernanke Just Admitted The Whole Mortgage-Backed Securities Question Is A Joke"},"content":{"rendered":"

\"Foreclosure<\/p>\n

In response to a Congressman’s question, Ben Bernanke said that he would look for a severe market reaction after the Fed stopped its purchases of mortgage-backed securities.<\/p>\n

In other words: If stopping buying them really causes problems, he’ll probably go back to buying them.<\/p>\n

And in other words: He doubts it’s really having a huge impact either way right now.<\/p>\n

The bottom line is that nobody has to worry that the government will let mortgage rates go up anytime soon.<\/p>\n

As we pointed out yesterday<\/a>, Fannie and Freddie have a blank check to underwrite mortgages, so even if Bernanke stops (and stops for good) another organ of the government will simply fill that void.<\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n