Monday, November 28, 2005

Inverted Yield Curve!

2 yr 99 27/32 +2/32 4.32 -0.09
5 yr 100 25/32 +5/32 4.31 -0.16
10 yr 100 24/32 +6/32 4.40 -0.16
30 yr 111 4/32 +21/32 4.62 -0.14

It's been very hard to come up with something interesting to post. I think it's obvious that the housing bubble is unwinding. The only question is how much and how fast. Those of us in search of a home are not really intereted in esoteric econometrics or rightious indignation. We just want to be able to afford a home for our family. Somthing that Mr. Greenspan took away from us! Anyway, the yield curve has inverted. i.e. the 2's are yielding 4.32 and the 5s are yielding 4.31. Full inverstion of 10's and 2's cannot be far behind. This will hopefully be the choke hold on the bubble that will make the speculators and loose lenders go away. I still have hope and faith in our country. This pain is going to be necessary.


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