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Banking System at Risk? Housing Expert Barry Habib on the Return of MBS

You may remember the acronym MBS from the ’07–’08 financial crisis. Michael Lewis's book and then movie, The Big Short, taught us all about how the mortgage-backed securities (MBS) market almost blew up the global financial system. Well, today, mortgage-backed securities are back in the news…

In this week’s episode of Global Macro Update, Barry Habib, founder and CEO of MBS Highway, joins Ed D’Agostino to discuss the role of mortgage-backed securities in Silicon Valley Bank’s failure—and if the other shoe will drop for the rest of the banking sector.

They also cover:

1:37 – A refresher on MBS in layman’s terms
6:00 – How a maniacal Fed has gotten burned
11:13 – SVB’s atypical setup
15:47 – The risks at other smaller regional banks
17:36 — How normally “safe investments” got SVB in trouble
19:13 – What’s next in terms of credit, inflation, and economic growth
21:58 – An outlook on 2023 housing prices and mortgage rates
26:36 – Whether there’s any relief for homebuyers coming on the supply side

To hear more from Barry Habib, along with about 50 other financial and economic experts, click here for info on our Strategic Investment Conference. It is the premier event for Mauldin Economics. Over a five-day period, we’re going to walk you through every topic that you need to know as an investor in today’s markets.

Want a transcript? Sign up for our free weekly e-letter, and you’ll get a transcript every week, plus a summary and link to the video:
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John Mauldin
Each week, investors and financial professionals around the globe turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. And for good reason. John is a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance—Thoughts from the Frontline—one of the most widely read investment newsletters in the world.
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