Earnings are in a down plane, from FED Operation Twist, monthly purchasing to lower rates. Hence, every month for infinity, they will squeeze the spread down. A downward trajectory in net income and yield is not priced into the stock, in fact pricing it in may result in free-fall. When the FED announced this, AGNC was at 36 and I said it was excellent time to SHORT OR SELL, no way is earnings or divy growth sustainable. It also means the earnings and divy has not dropped to a stable level, with a FED policy response monthly pressure for infinity, until the labor market improves looks like a last ditch desperation attemp at all cost. THIS MAY END VERY VERY VERY BADLY. This reminds me of the REIT blowout in 1972-1973, what a massacre, I was with ATICO Mortgage of Miami Beach, Fl. The FED wiped out almost all this carry trade business in a two year period. I still get spinal pain when I think of how easy and how fast it all happened and how wealth evaporated so fast, it was horrible.