+1 Mortgage rates don't matter, we're going to see 15% headline unemployment and people won't be able to pay their mortgages no matter how low the rates are. This service economy is fubared. These RE valuations were never worth anywhere near these crazy-top-of-the-bubble-valuations.
I think it also has to do with the weak TIC data recently. There simply wasn't enough foreign demand for longer term paper to soak up the massive amount of new borrowing in the pipeline, at least without weakness/higher rates. This idea of marketing it under improving liquidity and lowering the yield curve could just be a cover for "we don't have enough foreign buyers at these levels, so we have no other choice than to self-fund/print to maintain current rates."
Mortgage rates are down BECAUSE the Fed has been buying treasuries. They have been buying them for quite a while now. The other programs working??? Are you kidding? Had they let the big, crappy, criminal banks (fraud used to be illegal) go bankrupt we would be out of this whole mess already. The only solution is to Nationalize them or let them go under. I'm not sure which of these would be worse. But what they have done so far is the worst possible action they could have taken.
TALF hasn't actually started yet, so it can't be working yet. Looks like it's gonna be a bit more difficult than it seemed also.
Sounding as a good solution. The third world war won't be using destructive weapon but rather using financial weapon as arm forces.
where do you see that fed was buying treasuries? last time i checked (1 month ago) they were buying exactly "nada". do you even know where to look it up?
so what to do? buy CHF/USD? I feel like the fed & treaury are purposefully screwing my savings account. Seriously, what do you do with your savings???