Wednesday, June 18, 2008
sales of mortgages repackaged into bonds are down a whopping 89 per cent
The economy is in tatters. Consumer confidence has plummeted, food and energy prices are soaring, and the housing market is experiencing its biggest crash since the Great Depression. Manufacturing is down, unemployment is up, gasoline is topping $4 per gallon, and tent cities are sprouting up throughout the Southwest. If there's a silver lining to this mess; it's not visible from planet earth. The trillion dollar mortgage-backed securities (MBS) market is barely limping along. Investors are brushing off the higher yields and staying on the sidelines. How bad is it?