![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-bJdQV8mZH0GyHet8McWyzvMsU1agDPrUJ-cdpuuDF8VP1lbFCQNXswS7rJ63XXvKrQcFiDtL4gSMqSmVnRq4FBbBMrMRr30SmdNO5phKqHhtuDTBQzDpDRisKHz6aZoUw73I87BcuZc/s400/New+Home+Sales.jpg)
Bernanke will need to buy a whole lot of MBS pretty soon or it will be really tough to spin the ongoing mortgage refi and origination collapse (especially with the GSE on the hook for 125% LTV) as green shoots.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkvtsc7UMiCsKqpk_qcVGw0lZN_UG4IUIFn3E-emEhjipTOSnazcmglhT3OYCFLEIyXRpSqeCGhID79HouTKe8moN3t26ZVGKFeHghadgS22qKLxtAheHF-6UbgLIhmc0CAiyWv71ktRw/s400/Mortgage+Spread+6.24.09.jpg)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbfqCKeIzgSltMm33hPAo_yZHEp0upbLNhY3tdVFKR2k9BpkI5QtNMO7sGy5VLh0AoOfmeyoQfpVHggZdyiXmpJwXl4yzLyx8p0JeKCztxXJdRjChYbsMCP3J04oAe0IucZkUHC4lSvAo/s400/Mortgages+6.24.09.jpg)
"ON A LONG ENOUGH TIMELINE, THE SURVIVAL RATE FOR EVERYONE DROPS TO ZERO"