Big Dog's Boom Boom Room Message Board

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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: ChanceIs who wrote (130135)	4/7/2010 4:06:39 PM
From: ChanceIs	Read Replies (1) of 206182

Yes, yes, yes. The Greece fire got going in the kitchen with abandon. Crude down a buck. Dollar up a bit. Broad market down. The US 10 year auction had the highest bid/cover ration in quite a long time - US 10 years rates dropped. Interesting to see that 30 year mortgage rates spiked. But then again Bernanke said that mortgage rates wouldn't climb once he stopped quantitative easing, didn't he. I guess that the flight to safety no longer includes US mortgages. Good that somebody has gotten a little sense after a decade of real estate bubbles. Query for the board: Don't bond values rise when rates fall and vice-verse. So all of those $1.25 tri$$ion in mortgage backed securities that Bernanke just purchased for the FED on my behalf as my agent just took a big hit, right. Isn't the change in bond values the most when interest rates are low? Something about duration, convexity, and things any high school calculus student mastered. In business, we speak of the principal-agent problem. So I am the principal, and Bernanke is my agent. It doesn't appear that he is following my agenda, now does it. Just who might have benefited from him buying those MBS at the market top in bonds? Don't tell me the banks.

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