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Originally posted by velecico

I thought the secondary market for MBSs set the rate based on investors appetite for such investment , which at this time , is probably low and preceived as risky , thus the high spread

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Originally posted by clarenceworley

In Australia the spread is vegemite.

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Originally posted by CoralSnake

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Originally posted by clarenceworley

In Australia the spread is vegemite.

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I hade to google that:

Vegemite (/#712;ved#658;#618;m¨»#618;t/) is a dark brown savoury food paste made from yeast extract, used mainly as a spread on sandwiches, toast and cracker biscuits, as well as a filling of pastries like Cheesymite scroll, in Australia and New Zealand. It is similar to British and New Zealand Marmite (in texture and appearance but not flavour) and to Swiss Cenovis.

Vegemite is made from leftover brewers' yeast extract, a by-product of beer manufacturing, and various vegetable and spice additives. The taste may be described as salty, slightly bitter, and malty - somewhat similar to the taste of beef bouillon. The texture is smooth and sticky, much like peanut butter. It is not as intensely flavoured as Marmite and it is less sweet than the New Zealand version of Marmite.

Vegemite is popular with many Australians and New Zealanders, who commonly consider it a national food and a cultural icon.[1] It can be found in shops around the world, particularly where there are large populations of Australian expatriates. Vegemite has not been successfully marketed in other countries, apart from New Zealand, and has failed to catch on in the United States, despite being owned by US food company Kraft Foods. When seen in the United States, the Vegemite label often does not contain the Kraft logo.

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Originally posted by clarenceworley

In Australia the spread is vegemite.

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Originally posted by edunn

I posted about this on another thread, but I really think it deserves it's own.

NOBODY has ever accused the banks of charging too much. The discount/Fed Funds rate is at 2%, and WHAT are the rates today even after re-pricing? 6.50%? Isn't that that what the the banks are making one of these loans? Don't get me started on their SRP either. Everybody- i.e fat ***tard Frank and his merry gang of thievesa and the media are slamming the YSP isue like it's a bad thing.

Sorry guys, but I am getting so sick of the finger pointing and them singeling us o.out, as I am *assuming** you are to

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Originally posted by acibella

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Originally posted by edunn

I posted about this on another thread, but I really think it deserves it's own.

NOBODY has ever accused the banks of charging too much. The discount/Fed Funds rate is at 2%, and WHAT are the rates today even after re-pricing? 6.50%? Isn't that that what the the banks are making one of these loans? Don't get me started on their SRP either. Everybody- i.e fat ***tard Frank and his merry gang of thievesa and the media are slamming the YSP isue like it's a bad thing.

Sorry guys, but I am getting so sick of the finger pointing and them singeling us o.out, as I am *assuming** you are to

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Elisabeth, don't take this post as inflamatory, but the Fed funds rate has absolutely nothing to do with mortgage rates. The Fed Funds rate is the rate banks lend to EACHOTHER (not from the Fed), overnight to meet their regulatory reserve requirements. Each bank is required to have a specific amount of reserves and if they are short they can borrow overnight from another bank with a surplus. The rate of interest they pay is the Fed Funds rate.

Mortgages once originated are sold to Fannie or Freddie, who package them as an investment and sell them on the secondary market. The movement of this market is where we get our interest rates. If you attempted to lend long (30 years) and borrow short (overnight) you'd be out of business in a week. This is a much much more complex subject than what is listed here. Search google or the forum for mortgage backed securities. It'll help you understand where our money is coming from. I understand your gripe as brokers have been slammed A LOT in this crisis. But you are completely misdirected in the source of your argument on this one.

AC

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