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comment by uhsguy
uhsguy  ·  594 days ago  ·  link  ·    ·  parent  ·  post: Here's why regional banks are screwed.

Ok so in that chart who is buying mbs now?





kleinbl00  ·  594 days ago  ·  link  ·  

From the looks of it, no one.

am_Unition  ·  594 days ago  ·  link  ·  

That would signal the beginning of mass-defaults, then, right?

kleinbl00  ·  594 days ago  ·  link  ·  

No, it signals that whatever mortgages banks are writing

...is not being converted to bonds. What you're seeing is "effect." "Cause" looks something more like this: