.-= Yieldpig´s last blog ..You say you want a resolution… =-.

“Not every member of the Federal Reserve’s Open Market committee thinks the central bank’s job in handling the financial crisis is done, reports the New York Times. The Fed is taking steps to end some of the programs it had started to prop up the housing market through the collapse, but according to minutes from the committee’s mid-December session, the decision wasn’t universally viewed as the final action: “If [economists] are wrong, and the modest pace of economic growth slows or mortgage markets significantly deteriorate, ‘a few members’ of the Federal Open Market Committee believe that ‘more policy stimulus’ may be desirable, the Fed minutes said.” James Bullard, the president of the St. Louis Federal Reserve Bank, has publicly said the Fed should keep its program of buying mortgage-backed assets—to the tune of $1.25 trillion—alive. But Bullard isn’t currently a member of the committee, which decides such matters, though he will become one later this year. It’s already been estimated that ending the program will push mortgage rates back up by half a point to a point, squeezing some potential buyers out of the housing market. The Fed is walking a “tightrope,” as one economist puts it, between weaning the private sector off of the Fed’s beneficence and sending the housing market off another cliff.”

Right…. but it wouldn’t be the housing market to take the big dive, it would be the commercial maket, which, of course WOULD knock the housing market down if IT did a swan dive into a deep ocean tranch…