The US treasury has said it will start selling off $142 billion worth of mortgage sponsor securities that it bought during the recession and fiscal crisis. Apparently according to analyst the US housing market is still brittle. It is said that it would look to sell up to $10 billion worth every month and expect to engender a profit of between $ 15 billion and $ 20 billion from the selling of the assets.
The money will help to reduce the governments high budget discrepancy. The US treasury bought the securities in 2008 and 2009 as part of its attempts to combat the financial crisis. According to an interview by the assistant treasury secretary Mary Miller the US is continuing to recover the emergency programs that were put in place in 2008 and 2009 to help restore market stability.
The latest analysis predict that the housing market is still flimsy in the US with figures released on Monday showing a fall in existing home sales in February of 9.6 % compared to the previous month.