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pmchem
Jan 22, 2010


Hey Canadians,

I'm not Canadian. I don't read this thread. But the OP was last updated in 2013. Do you all need any mod action here? If so, please discuss amongst yourselves and let me know if there's agreement on anything that needs to done.

edit: I now see the OP posted in this thread less than 3 months ago, so hopefully (s)he will be able to act on anything needed in the OP itself!

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pmchem
Jan 22, 2010


mojo1701a posted:

Also: gently caress you.

VelociBacon posted:

I wish my dad loved me as much as you love your boss!

wait, fights in the CANADA thread?? I finally get to use a letterkenny reference

let's take about 20% off there

pmchem
Jan 22, 2010


redbrouw posted:

Can someone with investment and monetary policy knowledge explain to me, in a non pithy or conspiracy theory way, what the GOC purchasing mortgage backed securities is actually supposed to do? I know they're doing it with the BOC as the actual purchaser, and that it's supposed to do something about making investment in MBS less attractive, but after that my eyes cross.

the general concept is that of "quantitative easing":
https://en.wikipedia.org/wiki/Quantitative_easing

the typical story is that additional (central bank driven) demand for bonds will increase liquidity and support asset prices in those markets, leading to increased stability for banks, increased lending activity, and easier financing of government deficits. typically only government-backed bonds are purchased by respective central banks (and this often includes mortgages).

the whole concept is not without some controversy and it's a good topic for broad discussion in the no-tweet econ thread:
https://forums.somethingawful.com/showthread.php?threadid=4027219

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