[BoiledCabbage]

That's not propping up the housing market.

That's like saying "Avoiding nuclear war is propping up the housing market. If we have nuclear war then society ends, the population collapses and the housing market with it. So avoiding nuclear war is propping up the housing market."

It's a terrible analogy to attempt to make. And it's wrong.

[datadata]

The difference between nuclear war and a market is much much wider than the gap between derivatives and the underlying market. It is your straw man analogy that is ridiculous. Look, the Fed itself says that the goal of MBS purchase is to support housing markets:

> What was the policy objective of the Federal Reserve's program to purchase agency mortgage-backed securities? The goal of the program was to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally.

https://www.newyorkfed.org/markets/mbs_faq.html