February 19, 2010


Today’s Chart Sponsored by:
How to Collect Social Security at ANY AGE

Millions of Americans who are not yet retired are collecting $1,000 or more per month in Social Security Benefits.

And millions more have figured out how to "rig" the system to boost their retirement benefits by an extra $700 or more per month!

As Alabama resident David McManus (who's pocketing an extra $1,068 per month) recently said: "It's almost too good to be true."

Full report explains how these Social Security "loopholes" work...

Click here for the details...

In January 2009, the Federal Reserve began its $1.25 trillion program to purchase mortgage-backed securities backed by the federal housing agencies – Freddie Mac, Fannie Mae, and Ginnie Mae – in order to reduce the cost and increase the availability of credit for the struggling housing market. As you can see in the chart above, the Fed’s initial purchase of MBS coincided almost simultaneously with foreigners shifting from net buyers to net sellers of agency debt.

Over the course of the program, foreign selling of agency debt is almost a mirror image of the Fed’s purchases. Was this a crowding-out effect or did foreigners just seize the opportunity to diversify? If one of the United States’ largest creditors is any indication, then the trend is clear. In 2009, China was a net seller of nearly $25 billion of its agency-backed debt.

With the MBS purchase program at least temporarily scheduled to wind down by the end of the quarter, the success of the Fed’s intervention will soon be put to the test. 

Will mortgage rates continue their pre-bailout upward trajectory, likely forcing the Fed to step back in? Or was the Fed successful in reigniting the mortgage market?

The editors of our flagship publication The Casey Report are putting their money on the former as the most likely outcome. Want to find out how the Casey team is positioning their portfolios to profit from the big trends and how you can personally profit too? Click here to learn more.


 
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