Market:  We got whacked today by a report out of CreditSuisse that speculates that the Fed will slow down its buying of mortgage-backed securities in order to conserve its cash, so that it can keep rates lower longer.  This is speculation.  I think they’re wrong.  This doesn’t matter at all, because the markets spooked and bonds went in the tank.  That will take rates up by as much as .25%.

Analysis: CreditSuisse has a lot smarter people on board than I am, so maybe they’re right.  But here’s my question – if the government started out with a $750 billion buying plan, then felt the need to up it to $1.25 trillion (of which well less than half is spent), and did so without any difficulty, why on earth would it have any trouble doing it again if it needed to?  Is the $1.25 trillion some sort of hard cap?  Who made that the limit?  Is there any evidence that President Obama would hesitate to write more checks if he wanted to?

For now, though, if you were waiting to tell me what rate you wanted, it might be smart to pull the trigger and call me (801-310-3407) or email me (chris@lehilender.com) or tweet me (@chrisjoneslehi).  We could be in for a fun ride here.