The Fed issued a press release that it has no plans to buy MBS (which incidently just struck me as a funny name given the last two letters).
I had a conversation with a colleague yesterday where I suggested the market had another 20% to go. He looked at me like I was crazy and then said CA is in deep trouble if that happens. It did get me thinking: If the Fed/Govt are willing to pull out the stops they have pulled out for the current decline, what on earth would they do at another 20?
Either they are good forecasters, we are bad ones, or the feces will really hit the oscillating device if prognostications around here come true.
