How about Fannie's stock of late? The low-high for May saw a 660%% swing. There were several days of +200Mn shares crossing hands. The stock fell off a cliff at $5.40 and 36-hours later it was back down to $1.75. Some guys made a killing, others lost their shirts. I think 99% of what happened to FNMA was due momentum chasers and day traders. Clearly the market is having a difficult time trying to figure out what Fannie is worth these days. The news services are also struggling. The … [Continue reading]
Sunday, June 2, 2013
On the 2013 Social Security Report to Congress
The Social Security Trust Fund has come out with its annual report. Some have looked at it and concluded that the relatively stable conditions at SS the past year is evidence that all is well. There are many headlines like this … [Continue reading]
Saturday, May 25, 2013
Bond Vortex In The Works?
I got an email from a friend who runs money for a hedge fund that got my interest: may want to take a look at convexity vortex in mbs market and implications... "Convexity vortex'? What's that about? A bit more from this … [Continue reading]
Tuesday, May 21, 2013
Bernanke KIKs the Can
In February, when Ben Bernanke gave his report to Congress, he spoke of his concern about "Excessive risk taking". On May 10 he repeated his warning: very low interest rates, if maintained for a considerable time, could impair … [Continue reading]
Sunday, May 19, 2013
CBO – US Economy Set to Soar On Obamacare?
The Congressional Budget Office put conservative economic thinkers on their ass this week. In this Report (pdf), the CBO concluded that the US budget deficit is about to collapse to insignificance. The improvement in the deficit outlook is so … [Continue reading]
