The Failure of the Fed to Buy Long-Term Treasury Debt

The Fed continued to buy long-term Treasury debt and financing that much short-term, you know, overnight interest reserves. This was a massive fiscal expansion that had to be financed immediately because it had to be spent quickly. The failure to lengthen maturities when there was an opportunity to do so is what caused the mortgage market to stop functioning. So I think with hindsight, obviously a terrible mistake, but with foresight, it didn't make sense.