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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (54301)2/20/2006 12:52:38 PM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
Unfortunately, for the FCBs, they will soon realize this error, when Joe Sixpack increasingly fails to pay his mortgage, and then turns over the keys.

are you suggesting that the GSEs will default? or more precisely, that the US govt will fail to back up its "implicit" guarantee of the GSEs if the GSEs falter?

in any case, with the yield curve inverted there seems to be less than zero penalty for playing it safe (very short and very high quality). i'm a three-month man, myself.
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