[quote=deadzone]This demand is artificial and temporary because the taxpayers are subsidizing the entire mortgage.[/quote]
Agree on the demand is artificial but what makes you think that it is temporary? I think the taxpayers are going to subsidize the entire mortgage for many many years into the future.
Whatever the path the US economy is going, no foreign country is going to like the idea of holding onto US treasury or MBS. So the only one buying these would be US taxpayers.
I feel it is very naive to think the government’s “help” is not here to stay.
