Bonds and the liquidity trap worry
Glen Downs recently attended and spoke at a bond traders conference down in Florida. He shares his thoughts on what the bonds traders are struggling with and the concerns on the overall mortgage industry.
Also watch for Glen to join us on the weekend show where we recap the Iowa caucus and look ahead.
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As we near the end of the trading day, the rise is not as broad as first appears…..that is often a sign of manipulation or extremity of action in just a few stocks.
Note the NASDAQ is down.
index Last value Chng. % Chng.
Dow Jones Industrial Average 16,336.66 +183.12 +1.13%
NASDAQ Composite Index 4,504.24 -12.71 -0.28%
S&P 500 Index 1,912.53 +9.50 +0.50%
Global Dow Realtime USD 2,145.51 +3.77 +0.18%
Dow Jones Utility Average… 626.64 +8.01 +1.30%
NYSE Composite Index 9,491.61 +77.83 +0.83%
NYSE MKT Composite Index 2,085.30 +34.00 +1.66%
Russell 2000 Index 1,010.63 +1.80 +0.18%
The liquidity trap worry? Funny..
There never was liquidity, it’s always been credit. And the credit is drying up. Why? Cause the bond traders or credit facilities have to possess assets to do business. And ya know what? They don’t. That’s why they are freaking out… ( poor Ponzi’s .. )
Funny that CMO’s were mentioned. Heh heh
A pool if CMO went for .85 on the dollar in 2006. And now it goes for ..maybe 1 cent. And we wonder why the derivative holding banks charts are looking very weak..? They are close to toast! But most will make it through the wash ( as they always do.. )
But yes, the bond brokers are crispy toast, soon.
Maybe I’m nuts, but I do not see that much going on the 10 year Treasury.
http://www.marketwatch.com/investing/index/TNX?countrycode=XX