[quote=Bob]
Lucky for you, I have considerable knowledge of the bond market and fed policy.
…
So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels
[/quote]
If you had considerable knowledge of the bond market and fed policy you would not have made that statement. To the extent that the Fed has affected mortgage rates, it has done so by buying mortgage backed securities, not treasurys.
Direct funding of the GSEs by the Treasury has affected mortgage rates also. I do not know which effect has been greater.
