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May 11, 2011 at 2:39 PM in reply to: GSE limits slated to drop (PLUS bonus question for mortgage experts) #694618May 11, 2011 at 2:39 PM in reply to: GSE limits slated to drop (PLUS bonus question for mortgage experts) #695222
Rich ToscanoKeymasterThanks BG, I hadn’t checked in on that thread yet today… never mind!
May 11, 2011 at 2:39 PM in reply to: GSE limits slated to drop (PLUS bonus question for mortgage experts) #695371Rich ToscanoKeymasterThanks BG, I hadn’t checked in on that thread yet today… never mind!
May 11, 2011 at 2:39 PM in reply to: GSE limits slated to drop (PLUS bonus question for mortgage experts) #695724Rich ToscanoKeymasterThanks BG, I hadn’t checked in on that thread yet today… never mind!
Rich ToscanoKeymasterSweet… keg party at afx’s new pad! 😉
You are most welcome, sir (and thank you once again for helping me get site performance dialed in a couple years back). Congratulations on the new place!
Rich ToscanoKeymasterSweet… keg party at afx’s new pad! 😉
You are most welcome, sir (and thank you once again for helping me get site performance dialed in a couple years back). Congratulations on the new place!
Rich ToscanoKeymasterSweet… keg party at afx’s new pad! 😉
You are most welcome, sir (and thank you once again for helping me get site performance dialed in a couple years back). Congratulations on the new place!
Rich ToscanoKeymasterSweet… keg party at afx’s new pad! 😉
You are most welcome, sir (and thank you once again for helping me get site performance dialed in a couple years back). Congratulations on the new place!
Rich ToscanoKeymasterSweet… keg party at afx’s new pad! 😉
You are most welcome, sir (and thank you once again for helping me get site performance dialed in a couple years back). Congratulations on the new place!
Rich ToscanoKeymaster[quote=urbanrealtor]
If we ever really had a problem paying on those bonds we could just literally print the cash and mail it to the bond holders.
[/quote]True, but there may (or, I will go so far as to speculate, *will*) come a time when doing that causes serious problems of its own… problems that are not necessarily all that different from actual default.
If they print more, the problems will show up more in the currency market; if they show some restraint at the press then it may show up in the bond market as in Greece. Believe it or not I actually think there is a chance that the folks at the Fed would actually restrain themselves under certain conditions, even if it resulted in a big backup in bond yields.
But that’s probably trying to speculate too many moves ahead. My point is that it could get to the point that printing money to pay back debt is not perceived as all that different from outright default.
Rich ToscanoKeymaster[quote=urbanrealtor]
If we ever really had a problem paying on those bonds we could just literally print the cash and mail it to the bond holders.
[/quote]True, but there may (or, I will go so far as to speculate, *will*) come a time when doing that causes serious problems of its own… problems that are not necessarily all that different from actual default.
If they print more, the problems will show up more in the currency market; if they show some restraint at the press then it may show up in the bond market as in Greece. Believe it or not I actually think there is a chance that the folks at the Fed would actually restrain themselves under certain conditions, even if it resulted in a big backup in bond yields.
But that’s probably trying to speculate too many moves ahead. My point is that it could get to the point that printing money to pay back debt is not perceived as all that different from outright default.
Rich ToscanoKeymaster[quote=urbanrealtor]
If we ever really had a problem paying on those bonds we could just literally print the cash and mail it to the bond holders.
[/quote]True, but there may (or, I will go so far as to speculate, *will*) come a time when doing that causes serious problems of its own… problems that are not necessarily all that different from actual default.
If they print more, the problems will show up more in the currency market; if they show some restraint at the press then it may show up in the bond market as in Greece. Believe it or not I actually think there is a chance that the folks at the Fed would actually restrain themselves under certain conditions, even if it resulted in a big backup in bond yields.
But that’s probably trying to speculate too many moves ahead. My point is that it could get to the point that printing money to pay back debt is not perceived as all that different from outright default.
Rich ToscanoKeymaster[quote=urbanrealtor]
If we ever really had a problem paying on those bonds we could just literally print the cash and mail it to the bond holders.
[/quote]True, but there may (or, I will go so far as to speculate, *will*) come a time when doing that causes serious problems of its own… problems that are not necessarily all that different from actual default.
If they print more, the problems will show up more in the currency market; if they show some restraint at the press then it may show up in the bond market as in Greece. Believe it or not I actually think there is a chance that the folks at the Fed would actually restrain themselves under certain conditions, even if it resulted in a big backup in bond yields.
But that’s probably trying to speculate too many moves ahead. My point is that it could get to the point that printing money to pay back debt is not perceived as all that different from outright default.
Rich ToscanoKeymaster[quote=urbanrealtor]
If we ever really had a problem paying on those bonds we could just literally print the cash and mail it to the bond holders.
[/quote]True, but there may (or, I will go so far as to speculate, *will*) come a time when doing that causes serious problems of its own… problems that are not necessarily all that different from actual default.
If they print more, the problems will show up more in the currency market; if they show some restraint at the press then it may show up in the bond market as in Greece. Believe it or not I actually think there is a chance that the folks at the Fed would actually restrain themselves under certain conditions, even if it resulted in a big backup in bond yields.
But that’s probably trying to speculate too many moves ahead. My point is that it could get to the point that printing money to pay back debt is not perceived as all that different from outright default.
Rich ToscanoKeymasterGreat article, thanks ZK. I’m not as confident as the author about timing, but qualitatively I agree entirely with what he says.
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