Hi Prathamesh! Thanks for your question. I don't have a good handle on who the existing owners of MBS are. I suspect that it is a pretty diverse lot between big banks, commercial banks, asset managers and plan sponsors. Because the Fed is going through the secondary market with QE3, there is a stronger likelihood that the new money will make it out of the banking system - depending on who the sellers are. If it is mostly asset managers and plan sponsors, then I think the money will make it out of the banking system to a larger degree. In addition, the extended low rates might, just might, influence aggregate private sector credit to grow faster. I don't view this as a good thing, but new loans would transfer money from the commercial banks to the real economy. To better understand how this works, look up my piece titled Government Debt: a Gentleman's Wager. So, it's not clear how efficiently the new and growing monetary base translates into money supply, but the nature of QE3 means that it will be more "efficient" than going through the primary market.