“The mortgage market has more risk than previously acknowledged.”
Regular folks need not apply.
“Suppressing” bank balance-sheet data in a banking crisis to prevent the biggies from yanking their billions out of a weakened bank.
Loading up on Treasury securities, mortgage-backed securities, repos, “central bank liquidity swaps,” and “loans” to keep the Everything Bubble from imploding further.
Now even the fig leaf is gone.
Fed’s assets spike to high heaven to bail out the imploded Everything Bubble it had worked so hard to inflate over the past decade.
Indirectly via its Special Purpose Vehicles and its Primary Dealers, the Fed can buy even old bicycles, as long as taxpayers take the losses.
This is the moment when yield-chasing turns into a massacre.
Drags out bailout creature from Financial Crisis 1: “Loans” to Primary Dealers.
Frazzled by the sudden appearance of Financial Crisis 2, the Fed scurries in every bailout direction.