Originally Posted by
at6d
Let’s see. Invest heavily in mortgage securities. Government prints tons on money, Fed raises interest rates. Mortgage securities now losing tons of money. I think we’ve seen this play out before?
The Fed raised interest rates to slowly. They needed to stifle economic growth for a bit to slow the inflation. But the small increases along with the passage of the latest round of spending before the election kept everything too hot. They needed to raise the interest rates to 8% overnight last year but they didn’t.