VALUE: After Hours (S07 E19): Rudy Havenstein – How The Fed Distorted The Housing Market For A Generation

During their recent episode, Taylor, Carlisle, and Rudy Havenstein discussed The Fed Distorted The Housing Market For A Generation. Here’s an excerpt from the episode:

Rudy: So, lower rates are not necessarily the answer. Now, in 2020, they threw what, $5 trillion or something. I mean, they were buying $500 billion of MBS in a month or something. That was insane. So, they went insane, I think. I mean, they really went insane. People say, “Powell, he’s not Bernanke and Yellen.” They sure did. Actually, Greenspan started it. He’s patient zero in my opinion. But Bernanke, yes.

I have nothing but contempt for Bernanke and Yellen. But I don’t take Powell off the hook, because he went insane. They had $0 in MBS in 2008, and Bernanke bought a couple trillion and then bought a trillion. And then, Powell got it up to what, almost $3 trillion. And that just totally screwed up the housing market for our lifetime, I think, or at least until reality sets in at some point. But that was unnecessary.

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