Monday, June 23, 2008

If you must invest in Death Star nation ...



or otherwise known as US financials, go buy FRE and FNM BONDS, (Not STOCKS). BONDS.





The Quid-pro-quo condition is fully formalized and ratified by congress. Congress has formally announced they will take money from private money GSE to subsidize housing and this completes the requirement that quid-pro-quo exists in explicit form.

Laser firing in 10, 9, 8, ....

7 comments:

D said...

what's your inside take on the preferred?

MTGSPY said...

not good.

D said...

This is an interesting shift from your prior stance on accumulating the common...

thanks for sharing.

Anonymous said...

Still expecting that rate hike tomorrow? The markets been tanking like a bitch already, and short term T yields are pretty low again.

D said...

My vote is still that they will attempt a non-FFTR adjustment first.

1) margins
2) Unwind CFMA 2000
3) Rates

Greenie said...

No hike. Just jawboning.

MTGSPY said...

what u will see is backloading everything into the next one and it is just as well if not better if you are selling. prices did not moderate and the #s from cmdty has stuck, time to raise and raise bigger everytime they don't given the opportunity.