tag:blogger.com,1999:blog-6616959642391988608.post6257346887007181162..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: TED spread updateScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6616959642391988608.post-32088595202133799092009-04-23T10:24:00.000-07:002009-04-23T10:24:00.000-07:00I agree that the Fed is making a mistake here, and...I agree that the Fed is making a mistake here, and they are really crazy if they think they can get mortgage rates down to 4%. Should that happen, though, I would be prepared to throw caution to the wind and buy at least a few properties.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10187078014387369692009-04-23T10:10:00.000-07:002009-04-23T10:10:00.000-07:00I certainly agree with that, Scott. But their invo...I certainly agree with that, Scott. But their involvement distorts all the credit market prices from what they would be without the interventions. The relative price (interest rates) distortions change human choices, which is what the Fed wants to do -- but they shouldn't. That behavior is going to bite them again. <br /><br />After this horrendous housing bubble/bust now the Fed has a stated Tom Burgerhttps://www.blogger.com/profile/01484696976692382802noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72071814319804471032009-04-23T09:55:00.000-07:002009-04-23T09:55:00.000-07:00I know that the Fed is heavily involved in the mar...I know that the Fed is heavily involved in the markets these days, but I don't think they can control everything. As big as their balance sheet is, the Treasuries held by the world are much bigger. Mortgage-backed security holdings by the world are even bigger. The Fed can guide markets but it can't dictate prices for everything. Take the MOVE index, which is a composite of the implied volatilty Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14084936483181391252009-04-23T08:58:00.000-07:002009-04-23T08:58:00.000-07:00The current Contrary Investor commentary (a fee-ba...The current Contrary Investor commentary (a fee-based service) presents a good piece on credit market indicators. They show point by point that the Fed is manipulating all the credit market rates. They call it "fingers in the dike." <br /><br />There would be no apparent credit market healing without these Fed interventions, and there is no way we are going to get realistic "healing" until marketTom Burgerhttps://www.blogger.com/profile/01484696976692382802noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-73289037673690891142009-04-22T11:45:00.000-07:002009-04-22T11:45:00.000-07:00Thanks!Thanks!Donny Baseballhttps://www.blogger.com/profile/08040288585224426073noreply@blogger.com