• @[email protected]
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    fedilink
    11 year ago

    That’s actually a mechanism to inject more liquidity to the market. And therefore allow more loans, for more people.

    The opposite would mean rates would for sure increase because there would be very limited pool of capital to be loaned.

    • @grue
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      English
      11 year ago

      You say that as if we didn’t have mortgages at reasonable rates back in the day before mortgage-backed securities were invented.