Traditional Risks Likely to Emerge with Mortgage Bonds

As the Federal Reserve withdraws its support to the housing sector by putting an end to purchases of mortgage bonds, the housing industry does not appear to be unduly perturbed with the turn of events. The Fed initiated a massive $1.25 trillion bailout for the sector after the subprime crisis severely impacted the stability of the markets leading to a crash in prices and brought about a standstill in activity. [Read more…]