The Institutional Risk Analyst

Despite what Joe Biden says about helping Americans with the soaring cost of housing, he really protects Black Rock (BK), Pimco et al

Back in 2008, the FOMC opened the proverbial floodgates, pushing interest rates down to near zero and ushering in a bull market in both commercial and residential real estate starting in 2012. To give you a sense of just how far up the FOMC has manipulated home prices, the chart below shows loss given default (LGD) for the $2.5 trillion in bank-owned 1-4 family mortgages.