Now this wouldn't be so bad except that BenDover had to inject a ****load of liquidity to maintain the target today. In fact, the slosh took a fairly sizeable rocket shot northward.
The bond market, being experts at sniffing out bull****, saw all of the above and, having behaved itself up until this point along with a slowing economy, reversed hard, rocketing the cost of money for government debt upwards by six percent in one day!
Oh, and if you look at the short term (13 week) Bill market (the IRX) it rocketed higher by NINE PERCENT!
But but but you sputter, I thought BenDover's move was going to make mortgages and other loans more affordable?
Well let's see.
On 1/18 the 10 year closed at 3.648%.
Today, the 10 year closed at 3.640%.
Rate cut? Lower interest rates for mortgages and other debt?
BenDover cut the FFT by 75 bips and the Treasury Market gave him the finger, taking it ALL back in less than 24 hours!
You had about three hours yesterday to capture that lower mortgage rate.
If you didn't lock yesterday, tough crap - you missed it.
And if The Fed - and Congress - doesn't listen to the Bond Market and stop this stupidity government debt costs will continue to skyrocket and drag private debt costs higher, instead of the other way around, and will ultimately force the government to contract itself due to an inability to meet its interest obligations.
You only think The Fed controls interest rates.
It doesn't, and this is what the debt markets do when they get*****ed off at government stupidity.
You want to know what I think homeowners who are upside down ought to do after being RAMMED by the politicians today and Ben Bernanke on Turesday?
After seeing Ben Bernanke AND our government DRIVE UP, RATHER THAN DOWN, DEBT COSTS, DIRECTLY AND INDIRECTLY SCREWING MORE AND MORE PEOPLE?
They should walk away. Send in the keys. **** it. Yes, your credit will be trashed for 7 years. So what?
Tell the bank to get ****ed.
Today we had reported the first ANNUAL decline in home prices since the statistics began in the 1960s, and in all probability, since The Depression!
THIS IS NOT OVER.
House prices will continue to decline for the next TWO TO THREE YEARS, and if you're underwater NOW, you're going to be MORE UNDERWATER in a couple more years.
YOU WILL BE A DEBT SLAVE UNLESS YOU ACT TO STOP IT!
CUT YOUR LOSSES! Screw it. Check with an attorney to see if you can have other assets attached (in MANY states the answer is "no" on a purchase money mortgage) and tell the people who have screwed you - and us - to get ****ed.
You can either default the debt NOW, or LATER, after throwing even more money down the rathole. But either way, as the economy contracts and your job comes under stress, if you're upside down you're screwed.
Better to take the pain RIGHT NOW and cut off a finger rather than losing an entire LEG in a year or two!
Hell, even Cramer recommended doing this ON NATIONAL TELEVISION a couple of months ago!
Oh, and guess what - the mainstream press is even talking about it! Read all about it right here!
LISTEN UP FOLKS: YOU HAVE EVERY RIGHT TO TAKE ANY LEGAL ACTION YOU WISH. Analyze this as a pure BUSINESS DECISION, talk to an attorney, and then ACT.
(Note: You MUST speak to an attorney before attempting any of this and get LEGAL ADVICE BEFORE YOU ACT. I ain't a lawyer and don't play one on the net, and even if I was, its not legal to provide legal advice over the Internet! If you screw this up it will ruin your life. The law protects you but only if you follow it.)
As this deflation of the monetary base gains steam if you do not act you will have thrown away valuable money you could have otherwise held on to. Go rent a place first - so you pass the credit check and dig yourself out of your personal housing hell!
Beware equity investors.
The short bus is busting at the seams.
Buy this rally? Oh hell no.
It won't take long before reality sets in.
This is a time to sit on your hands and patiently wait for the opportunity to throw darts at the quote page of the Wall Street Journal, then short whatever you hit.
That day is coming, and soon.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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