Brad DeLong confirms that the Fed playing around in the mortgage-backed securities market is indeed a not normal thing. I said as much earlier, but monetary policy - especially the reality of Fed action - was never really my thing. Sure I taught plenty of students that the Fed engaged in the buying of selling of government debt. But, hey, what do I know. Maybe all the textbooks lied.
Here's hoping for a major Fed buy in the FCOJ-backed securities market over the weekend. Baby needs a new pair of shoes!
