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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (64507)	6/24/2006 11:08:11 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

I bet a fed funds at 3% and 10 yr at 6% looking out 12-18 months would be a logical balancing act. How does that balance a damn thing? Seriously. It will totally F housing, the stock market and probably most everythying else. However it will do wonders for anyone on a mortgage tied to libor (me). It is one of the reasons I chose to ride it out. I have long suspected that mortgage rates will disconnect. Your way is one possible disconnect (possible but I doubt it). The other is sort of a "Reverse Conundrum" in which the 10 yr falls but mortgage rates stay high (because of default risk). Mish