Get ready for inventory to plummet!!

[SD Realtor]

Bob I am not a bond market expert nor am I a novice. I do have access to some very expert bond market guys though. I have been waiting for th ebond market to pop for quite a long time but am out of the guessing business for it.

The current administration is not going to let the bond market pop. Even if they have to give the entire state of Alaska to China, I do not seem them letting that market roll over just yet. Things are entirely to fragile right now so they need to slow roll the process just like everything else.

Look back at previous posts and we have discussed all of this as nauseam so you are not really bringing anything new to the table. We all admit it will pop, we all admit that we could/should see double digit interest rates like the 80s and the only disagreement is when.

If you think Obama is gonna let this happen in the next few months or even a year I disagree entirely. It doesn’t matter what he has to put up as collateral.

[(former)FormerSanDiegan]

Bob, thanks for the inside information on the Bond market. If I read this right, you are suggesting that the Fed may have to reverse course and that the result would be that interest rates would go up. Maybe this is the next bubble. Interesting.

Also, thanks for the good news on the release of REOs in the future. Maybe we should start a new thread about that stuff, but what should we call it ? Hey, here’s a stab at coining a phrase. Let’s call it “shadow inventory”.

[(former)FormerSanDiegan]

Bob, thanks for the inside information on the Bond market. If I read this right, you are suggesting that the Fed may have to reverse course and that the result would be that interest rates would go up. Maybe this is the next bubble. Interesting.

Also, thanks for the good news on the release of REOs in the future. Maybe we should start a new thread about that stuff, but what should we call it ? Hey, here’s a stab at coining a phrase. Let’s call it “shadow inventory”.

[(former)FormerSanDiegan]

Bob, thanks for the inside information on the Bond market. If I read this right, you are suggesting that the Fed may have to reverse course and that the result would be that interest rates would go up. Maybe this is the next bubble. Interesting.

Also, thanks for the good news on the release of REOs in the future. Maybe we should start a new thread about that stuff, but what should we call it ? Hey, here’s a stab at coining a phrase. Let’s call it “shadow inventory”.

[(former)FormerSanDiegan]

Bob, thanks for the inside information on the Bond market. If I read this right, you are suggesting that the Fed may have to reverse course and that the result would be that interest rates would go up. Maybe this is the next bubble. Interesting.

Also, thanks for the good news on the release of REOs in the future. Maybe we should start a new thread about that stuff, but what should we call it ? Hey, here’s a stab at coining a phrase. Let’s call it “shadow inventory”.

[(former)FormerSanDiegan]

Bob, thanks for the inside information on the Bond market. If I read this right, you are suggesting that the Fed may have to reverse course and that the result would be that interest rates would go up. Maybe this is the next bubble. Interesting.

Also, thanks for the good news on the release of REOs in the future. Maybe we should start a new thread about that stuff, but what should we call it ? Hey, here’s a stab at coining a phrase. Let’s call it “shadow inventory”.

[XBoxBoy]

[quote=SD Realtor]The current administration is not going to let the bond market pop. Even if they have to give the entire state of Alaska to China, [/quote]

Hmmmmm…. now that’s an interesting idea. Do you think they’d take it? I have a brother-in-law who used to live in Alaska, I’ll gladly throw him into the deal for free.

[XBoxBoy]

[quote=SD Realtor]The current administration is not going to let the bond market pop. Even if they have to give the entire state of Alaska to China, [/quote]

Hmmmmm…. now that’s an interesting idea. Do you think they’d take it? I have a brother-in-law who used to live in Alaska, I’ll gladly throw him into the deal for free.

[XBoxBoy]

[quote=SD Realtor]The current administration is not going to let the bond market pop. Even if they have to give the entire state of Alaska to China, [/quote]

Hmmmmm…. now that’s an interesting idea. Do you think they’d take it? I have a brother-in-law who used to live in Alaska, I’ll gladly throw him into the deal for free.

[XBoxBoy]

[quote=SD Realtor]The current administration is not going to let the bond market pop. Even if they have to give the entire state of Alaska to China, [/quote]

Hmmmmm…. now that’s an interesting idea. Do you think they’d take it? I have a brother-in-law who used to live in Alaska, I’ll gladly throw him into the deal for free.

[XBoxBoy]

[quote=SD Realtor]The current administration is not going to let the bond market pop. Even if they have to give the entire state of Alaska to China, [/quote]

Hmmmmm…. now that’s an interesting idea. Do you think they’d take it? I have a brother-in-law who used to live in Alaska, I’ll gladly throw him into the deal for free.

[Fearful]

[quote=Bob]
Lucky for you, I have considerable knowledge of the bond market and fed policy.
…
So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels
[/quote]
If you had considerable knowledge of the bond market and fed policy you would not have made that statement. To the extent that the Fed has affected mortgage rates, it has done so by buying mortgage backed securities, not treasurys.

Direct funding of the GSEs by the Treasury has affected mortgage rates also. I do not know which effect has been greater.

Eric

[Fearful]

[quote=Bob]
Lucky for you, I have considerable knowledge of the bond market and fed policy.
…
So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels
[/quote]
If you had considerable knowledge of the bond market and fed policy you would not have made that statement. To the extent that the Fed has affected mortgage rates, it has done so by buying mortgage backed securities, not treasurys.

Direct funding of the GSEs by the Treasury has affected mortgage rates also. I do not know which effect has been greater.

Eric

[Fearful]

[quote=Bob]
Lucky for you, I have considerable knowledge of the bond market and fed policy.
…
So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels
[/quote]
If you had considerable knowledge of the bond market and fed policy you would not have made that statement. To the extent that the Fed has affected mortgage rates, it has done so by buying mortgage backed securities, not treasurys.

Direct funding of the GSEs by the Treasury has affected mortgage rates also. I do not know which effect has been greater.

Eric

[Fearful]

[quote=Bob]
Lucky for you, I have considerable knowledge of the bond market and fed policy.
…
So far, Bernanke’s actions seem to be working in the short term, as buying treasuries has had the effect of lowering mortgage rates to record low levels
[/quote]
If you had considerable knowledge of the bond market and fed policy you would not have made that statement. To the extent that the Fed has affected mortgage rates, it has done so by buying mortgage backed securities, not treasurys.

Direct funding of the GSEs by the Treasury has affected mortgage rates also. I do not know which effect has been greater.

Eric

[Author]

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