End of Fed Purchase of MBS on April's Fool Day 2010?

[Account Closed]

BP Community:
Branching off the next wave of foreclosure posting I wanted to get a sense from the community on what would happen to the mortgage market once the Fed has stopped buying up mortgage back securities (MBS) from the secondary markets ending on April 01, 2010. How would that impact real estate investors moving forward? So far the American Taxpayer is the proud new owner of about $1.5 trillion worth of MBS (a.ka. dog crap).

Here's a little blurb about the Fed discontinuing buying MBS's.

Beginning in January 2009, and every single business day since then, the Fed has been buying up Mortgage Backed Securities (in a very non transparent market). The program, which ends tomorrow, will have transferred $1.25 trillion of MBS "on behalf" of the US taxpayer, representing the single biggest asset on the Fed's balance sheet, and backing up such liabilities as currency in circulation (yes, that dollar in your pocket is collateralized more than half by rapidly devaluing, and in many cases cash flow non-producing houses) and excess reserves.

David H.