Not trying to start a partisan battle but I must point out that government spending has been increased by massive proportions over the past 10 years. Any plans I've seen only decrease the amount of spending increases, they don't decrease actual spending.
The problem of people that complain about big government.
When I got my FOID card 10 years ago, it was sent to me within 2 weeks.
This year I renewed my FOID card. It took 4 months.
This is what happens when you cut government spending.
Well that all depends on what they would do should it happen. If they decide to make those payments and lay off the guy who mows grass in the national parks, the reaction would be a positive one. Of course the park system would want to close everything the very next day to make the public suffer and reshape public opinion...
These are your own words.
"I just don't see anything wrong if there is no new debt limit"
What do you think will happen to the 2-3% interest the U.S. pays?
NLY holds agency backed mbs. Any downgrade of the U.S. will affect agency securities as well.
Do some research before you spout the above words about the debt limit.
I do not compare US with Greece.
But keeping on borrowing can bring only problems. Don't see anything good out of this.
The 2-3% interest we pay today is because we always pay our debt.
We sell bonds to pay the due debt and for current expenses. $0.46 of each dollar spent by the government is borrowed. How far can we go on this scam ? Would anyone like to see $0.75 or more of each dollar spent to be borrowed ?
As far as the $10 for nly please read more about MBS to understand how nly operates.
Glad someone agrees with me.
The negative effect on stocks will be temporary and prices will adjust similar to the housing crash. Good companies will survive, the ones with high P/Es will simply fold.
Nothing wrong with that.
If we default on payments the rates will go higher making it harder to borrow again. That's not good but our national deficit will not increase any more.
We all pay for our financial mistakes. Companies do the same. Countries do the same.
I wish our founding fathers had included in the Constitution that there is no such thing like " public debt "....
dont you guys pay attention
fxed agency being attacked relative to arms lately
agnc, nly, cys
even anh has rallied after bad earnings wtih all their arms.
cmo and hts on the up and arr moving too
hts has sputtered however, and hts is the tell
if hts fizzles well then its all garbage, grab hts and short cmo
but watch nly and agnc, if agnc pushes forward, then nly should be fine and vice versa.
focus is not on just agency or non agency, but is there fixed or arms.
S&P announced today that not only must the debt ceiling be raised, but that a plan like the grand plan be passed or they will downgrade US debt. When that information hit the news the price went down from 18.03 t0 17.91.
I've been thinking of this today; why NLY has been acting poorly? It seems to have been doing well as other financials have sold off, this may be a reversal of that trade. NLY is a safety/dividend play, at least at some level it is a "risk-off" trade. The banks are much more of a "risk-on" play. People may be shifting money from NLY and the like and back into the traditional banks. BAC is up about 4% today, for example.