I can not claim profound understanding of this stuff ... far from it, I am still learning on the run.
That said though, I am getting a handle on it.
What has data on 2010 delinquency rates got to do with it. Those rates are generated in a market which is trading at the bottom ... it would be troubling if the delinquency was still high. [I notice the delinquency rates peak in 2010 ... probably in line with the reset of honeymoon rates]
The issue is .... the Fed bought assets generated at the peak of the bubble and they paid bubble prices.
On another aspect .... the sheer size of the 'liquidity' injection which the Fed has found it necessary to do [2.5 trillion] raises an obvious question. Is that the actual magnitude of the cumulative losses incurred in the GFC and its aftermath?
