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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: excardog who wrote (576)	2/24/2004 11:09:12 PM
From: mishedlo	Respond to of 116555

As I was once on the lowering side and not too long ago I understand your assumptions. My opinion has changed with the notion that there is just too much riding on the gse's backs now. A sudden melt down is in no one's best interest. Thanks for the efforts you put in here. Scott FNM is in a weird relationship actually. Bear in mind that the economy will SINK if rates go up. Take a good hard look at treasuries. Do you see a trading range? I do. That is why I do not have any. Compare treasuries to eurodollars. No comparison. The FED wants them low, and FNM doesn't but FNM does not really want skyrocketing rates either or it gets NO MORE LOANS! Thus, everone is happy in the 4.00 to 4.20 range on the 10 yr. But.... If the FED decides it needs to stimulate more do you think it will not put heat on FNM by lowering rates? So all in all the pressures are to the downside not the upside IMO, but everyone happy (for now) in a range. Mish