Andrew

So Much for That Mortgage REIT Bull Market

Thanks for sharing Mark, I also hold NLY and bought some TMA.pr.f last week at the "bargain price" of $7.

The only thing that will help mortgage reit unit prices now is government intervention.....Fed start buying mortgages.

Beyond the short term panic, these reits will face a tough recovery over the next few years because of a credit contraction in US financial system.

Despite of recent criticism of the Fed, I believe it is doing the right thing for long term economic growth by deflating the credit bubble. I believe they will: let the weakest players die; severely wound the average, and scar the strongest (at least enough to keep them in check for another 10 yrs). However, I do believe we are getting close to the end of the lesson at this point. Afterall, this is an election year. I believe NLY will be a survivor, although I'm not sure if it will break $20 any time soon. I'm going to be content in collecting my 5%ish yield. As for TMA, we'll find out over the next couple of weeks whether they are one of the survivors in the financial jungle or merely one of the weak.

Hey, here's a hot tip......try getting into commodities, oil and gold.....it's really working well.......no way will they go down from here because they are finite resources.