2008-11-12bloomberg.com

Residential and commercial-mortgage backed bonds tumbled after Treasury Secretary Henry Paulson said the government no longer plans to buy devalued mortgage assets, credit-default swap indexes suggest.

...

``No one in the market knows what to believe any more,'' David Castillo, a senior trader of structured-finance bonds at Further Lane Securities in San Francisco, said in an e-mail today. ``Things change on a daily basis.''

You can say that again, David. The government hasn't "bailed out" the private markets with its litany of ad hoc interventions this past year. It has destroyed them.


Lijit Search

Comments: Be the first to add a comment

add a comment | go to forum thread