It the the down slope and the FED Operation to bring down rates for infinity. This strategy is designed to drive yield spread to zero. It isn't working, but these idiots that just got reelected still believe they saved the economy 3 years ago and that this policy is a miracle drug. For those in touch with reality, driving rates to zero has now put a 700 Trillion dollar pension system into 40% unfunded due to lack of a safe and liquird yield. Large corporations like Excelon, Boeing and now having to dramatically cut cost and the dividend, in order to fund shrinking revenue in their pension accounts and exponential increase in Baby Boomers retiring and drawing monthly payouts.
Interest rates have to rise dramatically, not only to stabilize the pension system but they need a bigger increase now to offset the HIGHER TAXES on dividends, interest and capital gains. THE STOCK MARKETS ARE VERY VULNERABLE TO A VERY SIGNIFICANT DOWNTURN. 70-90% drop possible this time.
Wow a 10 post history. I wonder what other aliases you travel under. Whenever it rains it brings out those slimy slugs that leave that trail of nasty slime juice after them. They manage to climb into everything, even my BB'Que outside. I have often wondered how they'd cook up!!
We have had a lot of slugs crawl out from under the rocks over the past 4+ years since AGNC's IPO , in May 2008. Whenever it rains and the PPS pulls back, the rip tide brings them out. I use salt on slugs. It works great!! They writhe in pain as their short positions, err... I mean bodies, shrivel up. When the sun comes out(AGNC's run to EX), they are a distant memory.
Weird, isn't it? I see the sun breaking through. Salt's already working....;-)