ok peter. Someone gave me a different point of view:
“I don’t agree that government action was to primarily lower mortgage rates, it was to provide liquidity for businees borrowing and lower LIBOR.
I think primary reason bonds are falling and yields are increasing is the very real prospect of default and recognition of higher risk. Private firms as well as municipalities like NYC have greatly decreased revenues that mean they may not to be able to service their debt.
You forget that “bailout” loans will be to purchase securities at a discounted rate where there is no existing market. The purchse is offset by the value of the securities.”
