KIBU, I understand how the fed can move MBS’s off a companies balance sheet. But in Paulson’s testimony, he said that the fed’s purchases of MBS’s would “prime the pump” for the market and attract other investors. That doesn’t seem possible if the fed is paying artificially high prices.
stockstradr, I’ll check out the video as you suggested. I’m a regular reader of Roubini’s blog but it will be interesting to get views from other economists as well.
