Fed keeps trillions in toxic MBSs: Private equity firms squeeze homebuyers, affordable housing remains out of reach.

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The housing market didn’t collapse. It was looted. The 2008 crash wasn’t a failure. It was a transfer. The Fed absorbed $2.7 trillion in toxic mortgage-backed securities from its bankster accomplices, dumped the fallout onto taxpayers, and called it stability.

“The Fed still holds about $2.7 trillion in mortgage-backed securities, down only slightly from its peak.” Wall Street Journal

This isn’t cleanup. It’s containment. The Fed embalmed the bubble, froze the rot, and left the poison on the books. These MBSs are not assets. They are radioactive debt bundles propped up by yield curve suppression and endless injections of funny money for speculators. The Keynesian fraudsters did not fix the system. They rigged it.

“Over 650,000 people were homeless in the United States on a single night in 2023, the highest number recorded since the government began collecting this data.” New York Times

That number is not a statistic. It is a body count. HUD did not miscalculate. It confessed. The housing system does not fail the poor. It excludes them. Families sleep in cars while the Fed continues to subsidize scarcity.

“Blackstone has amassed more than 300,000 residential units globally, including tens of thousands of single-family homes in the U.S.” Bloomberg

Private equity locusts like Blackstone are not buying homes. They are erasing buyers. They outbid families with algorithmic speed, automate rent hikes, and weaponize evictions. This is not investment. It is colonization. Every home they scoop up is one less for a legitimate buyer.

“There is no state in the country where a person working full-time at minimum wage can afford a two-bedroom apartment.” NLIHC

That is not a market failure. It is a policy choice. The housing wage is unreachable. The minimum wage is a myth. The government’s response is silence. The Fed and the federal government are not solving the crisis. They are underwriting it.

“The Biden administration’s Housing Supply Action Plan has failed to meaningfully increase affordable housing stock.” Politico

Intentions do not build homes. Zoning reform stalled. Tax credits evaporated. Construction lagged. The plan was a press release masquerading as policy. Meanwhile, demand surged, prices soared, and Wall Street feasted.

We will not have affordable housing until private equity is banned from residential markets, the Fed’s toxic MBS hoard is purged, and the stimulus-for-speculators regime is dismantled. The housing market is not broken. It is captured. Every day it remains in the hands of central planners and financial predators, the collapse deepens.