The Fed now owns nearly 1/3 of all U.S. mortgages

Re:The Fed now owns nearly 1/3 of all U.S. mortgages by adventured on Wednesday September 09, 2020 @02:03AM (#24417721)

The ECB has 2x the portfolio size as a share of GDP as what the Fed does. The Bank of Japan's portfolio is about 4x the Fed on that metric.

Why isn't the Eurozone collapsing, with interest rates skyrocketing and the Euro imploding?

Somehow Japan is still managing - despite a public debt & budget situation several times worse than the US - with a GDP per capita still on par with Britain, France, and just below Germany. And yet all the armchair experts endlessly predict the demise of the US.

[ Parent | on HN ]

Re:The Fed now owns nearly 1/3 of all U.S. mortgages by pieno on Wednesday September 09, 2020 @03:25AM (#24418265)

Not really.

ECB balance of assets purchased: €2.9tn(August 2020) Eurozone GDP: €11.9tn (2019) So 24%

Fed balance of assets purchased: $6.3tn (September 2020) US GDP: $21.4tn (2019) So 29%

Even if you look at total assets on the balance sheet (Including assets purchased outright and collateralised loans), the difference is not that huge: ECB: €4.7tn (39%) Fed: $7.0tn (32%)

[ Parent | on HN ]

Re:The Fed now owns nearly 1/3 of all U.S. mortgages by mrep on Wednesday September 09, 2020 @08:38AM (#24420316)

Source for ECB? FRED says they've got about 6.458 trillion euros [0] and the english version of the ECB website says they had 4.6 trillion at the end of 2019 which also matches the FRED and they haven't updated it since then [1].

[0]: https://fred.stlouisfed.org/series/ECBASSETSW

[1]: https://www.ecb.europa.eu/pub/annual/balance/html/index.en.h...

[ Parent | on HN ]

Re:The Fed now owns nearly 1/3 of all U.S. mortgages by baconandeggs on Wednesday September 09, 2020 @02:33AM (#24417922)

Because the US is the biggest debtor in the history of humanity and is supporting (in a symbiotic relationship) all those countries you listed who are also at risk of collapsing.

[ Parent | on HN ]