The FED is nuts. I've had it with them. Great jobs report. So what do they do? They buy billions on bonds last Friday to keep rates low. Oh and don't forget Ben said last May that taper is coming in September. But they fooled everyone again. NO TAPER!
I will never buy a bond again until the FED finally does a taper. Put up or shut up Mr. Fed.
Happened in November right after the euphoria from the great jobs report waned. The FED bought bonds Friday to keep the 10 year from skyrocketing. They can't do that forever. Probably will get a 3% 10 year this week and then watch out below.
They had advance info on the jobs report. They knew it was a great report. So,to keep rates from goig to 3% they bought bonds. And you think they want to taper? Ha! They are scared to death of what will happen if they do.
What is wrong with this picture? Some say the FED went in today and bought a bunch of bonds in anticipation of a great jobs report to keep rates down.
Yet,AGNC is way down. Any thoughts?
This makes NO SENSE to me.
You know it's coming tomorrow and the market goes down 200 points easy. However,the FED will NOT taper in December. But the market doesn't care. It's spooked by anything that might lead to tapering......sometime.
Well good. Let's taper! Things are just going gangbusters in this economy. Right? Let's raise those rates to the roof and see just how much of a recession the FED can cause.
It appears ARR's goose is cooked. Same thing with AGNC. I never thought it would happen. Damn! Blame the Bernank for his comments last May on tapering. Even though I don't think tapering will occur for a long time everyone is heading for the exits with the MReit's.
Gotta know when to fold em' I guess. I'm out.