Any thoughts as to why...

Soylent Green Is People_IHB

Soylent Green Is People_IHB

New member
....if there is some measure of bottoming in house prices, a leveling consumer confidence (+/- 3%), and a stronger stock market (up from March lows) why are mortgage rates re-approaching the panic lows of February? Most 30 fixed rates have hit 4.6% for reasonable fees.



Why?



What are your .02c?



Remember, Tuesday is Soylent Green day!
 
This is my theory... rates rose (MBS declined)in the last few months because the MBS market thought the Fed was going to stop buying securities by year end. The Fed announced last week they were extending their program to buy MBS and thus the market rallied and rates dropped.

See article <a href="http://www.marketwatch.com/story/treasurys-under-pressure-before-fed-decision-2009-09-23?link=kiosk">here</a>
 
Because Ben believes that a lack fo readily available and affordable (read virtually free) credit caused the Great Depression and Ben wants to be the one remembered for preventing the Great Recession.



He will fail. We are Japan. Welcome to America's Lost Decade.
 
[quote author="No_Such_Reality" date=1254306380]Because Ben believes that a lack fo readily available and affordable (read virtually free) credit caused the Great Depression and Ben wants to be the one remembered for preventing the Great Recession.



He will fail. We are Japan. Welcome to America's Lost Decade.</blockquote>


We might as well move to Canada.
 
I'm thinking the stock run up is a fools rush/headfake and the smart money is flowing into fixed income investments. Bill Gross is putting his cash into MBS's and Treasuries. CNBC / Kramer listening zombies are trying to play the NYSE Casino, not realizing that the odds favor the house.



My .02c



Soylent Green Is People
 
I think assuming a bottom for housing is false.

Equities run up is a function of money printing and POMOs and fund managers trying to play catch up.
 
[quote author="Soylent Green Is People" date=1254359916]I'm thinking the stock run up is a fools rush/headfake and the smart money is flowing into fixed income investments. Bill Gross is putting his cash into MBS's and Treasuries. CNBC / Kramer listening zombies are trying to play the NYSE Casino, not realizing that the odds favor the house.



My .02c



Soylent Green Is People</blockquote>


Who's the house?
 
[quote author="RoLar_USC" date=1254364964][quote author="Soylent Green Is People" date=1254359916]I'm thinking the stock run up is a fools rush/headfake and the smart money is flowing into fixed income investments. Bill Gross is putting his cash into MBS's and Treasuries. CNBC / Kramer listening zombies are trying to play the NYSE Casino, not realizing that the odds favor the house.



My .02c



Soylent Green Is People</blockquote>


Who's the house?</blockquote>


The NYSE.
 
[quote author="RoLar_USC" date=1254364964][quote author="Soylent Green Is People" date=1254359916]I'm thinking the stock run up is a fools rush/headfake and the smart money is flowing into fixed income investments. Bill Gross is putting his cash into MBS's and Treasuries. CNBC / Kramer listening zombies are trying to play the NYSE Casino, not realizing that the odds favor the house.



My .02c



Soylent Green Is People</blockquote>


Who's the house?</blockquote>
GS and JPM
 
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