Fannie Mae Preferred S (FNMAS)

[jwnoble3]

Only two in town that can soak up trillions (GSEs). Game that only the worlds reserve currency can play.

The other option the Fed has is to hold onto the MBS for a very long time...very risky if they need to engage in another crises. IMHO. The current amount and experimental non-conventional monetary policy is very risky as well, but another lesser evil choice did not exist.

I look for Yellen to take a more measured stance on US housing finance market. She cannot afford to let our broken congress mess with her toolbox/punchbowl.