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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: surfbaron who wrote (4483)	8/14/2002 9:54:52 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

right, 10yrTrez not same as mortgage-backed securities this is an upcoming major league curve ball Treasurys are far safer than the rest of the bond world right now we have a SCREAMING DANGER SIGNAL in high spreads a spread is the diff between Trez 10-yr yield and corp yields with all the bankruptcies out there, spreads are rising with threats to the viability of mortgage-backed securities, with danger signals within FannyMae and their unprotected position against higher rates later, the MB-securities are not gonna come down in rates as fast as Trez heck, I believe by Christmas we will be seeing foreign dollar selling in the form of TBonds with rising rates, or at least stalled rallies there gonna be wild but yes, you make a great point cost of mortgage servicing will not come down much more it will be nickel/dime effects so dont count on a massive new trend of refi's and its associated benefit to consumer spending (over their heads) three bubbles remain: 1. consumer debt 2. treasury debt 3. dollar all will be popped with huge consequences / jim