Tuesday, March 11, 2008

This quote says it all really…

Treasuries Fall as Fed to Accept Mortgage Debt as Collateral

``In effect, the Fed has gotten into the mortgage business, which ultimately is going to be quite stimulative to the economy,'' said Michael Aronstein, chief investment strategist in New York at Oscar Gruss & Son Inc. The risk of losses on U.S. Treasury notes exceeded German bunds for the first time ever on concern the subprime mortgage crisis is sapping government reserves, credit-default swaps prices show. Contracts on 10-year Treasuries traded at a record 16 basis points earlier today, compared with 15 basis points on German government notes, according to data compiled by BNP Paribas SA.

Posted by tyrellcorporation @ 08:54 PM (668 views)
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7 thoughts on “This quote says it all really…

  • whiteknight says:

    These guys never stop do they…. Isn’t that the entire problem?

    All you need to see is one quote from a group of professionals following on from such activity and you have your precise answer immediately as to why this pain is going to continue.

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  • happyrenterz says:

    Treasuries are now subprime

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  • ha bloody ha, soon there won’t be a reserve left!

    Just a load of rotton sheds that no-one wants.

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  • Am I alone in thinking that the Fed’s latest ‘move’ in concert with other central banks is, well, just noise? A bit like the fabled sale of the IMF’s gold, used as a big stick to supress golds market value. Wall Street must be desperate to go up by 400+ on this sort of news – I mean, the traders are clutching at straws.

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  • I’m getting nervous with all the moves across the pond.

    How long now before the Chinese start dumping the dollar ? The Fed needs to be careful!

    The problem isn’t so much about mortgages, it was about selling people credit. OK, the consumer boom followed….things “looked good”.

    ….but things aren’t so good now are they?

    I think the Fed is in danger of making things worse with its Rambo style of interventions (apologies to Sylvester).

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  • This is excellent news for contrarian dollar bulls. Expecting the dollar to reverse soon, perhaps quite viciously…not sure exactly when or how high it will fall first, but these blood on the streets / everybody thinks its gonna collapse headlines normally denote the final phase of the bear. Yesterday’s 400+ move up in the dow was against oversold and divergences on the momentum. Thats an example of what can happen when everyone is short and the market gets some “Good” news….

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  • happyrenterz says:

    good point on the shorts techieman

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