"utter chaos"

[solarbird]

I don't have time for much, I'm too busy getting ready for Boston. But the MBS (mortgage backed securities) market imploded again today, with the 30-year FNME benchmark price falling 32/32nds, or an entire point:

Across the Curve reports traders calling it "utter chaos" and adding:

As the spread has moved outside of some historic parameters dealers and others would bet on the move ending and to the extent that they guessed wrong they might be looking at a career changing event. Anyway the point is that there is blood in the streets somewhere.

Thanks again to tf:Zarathustra for the chart.

Mortgage filings are already dropping off sharply in response to last week's "Black Wednesday" event. This is a strongly negative indicator for anyone hoping that housing's current wave of foreclosure purchases indicated a bottom.

Comments

[xanath.livejournal.com]

This is a strongly negative indicator for anyone hoping that housing's current wave of foreclosure purchases indicated a bottom.

i.e., anyone with no grounding whatsoever in reality. The NAR should be collectively shitting itself right about now.

[solarbird]

Ah, but the NAR has no grounding in reality, so why would they? It'll be a bug-on-windshield event for them, or maybe, maybe, a "Bus what bus <splat>" moment.

[xanath.livejournal.com]

Good point. Some may just be playing a good game, but the rest may just be as obtuse as they act.