September 24, 2011
The investment market is buying mortgage backed investments to support the mortgage market, which is full of mortgages that are under water. This high risk requires a high rate of return for investors including me.
For the risk we require a high rate of return of 13 to 20%. Should you implement the investment rule then the investment market including me will pull out of the stocks investing in mortgages and the result will be a large increase in mortgage costs to the consummer. President Obama does not want that to happen.