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September 30, 2008
On Markets
Yesterday, the Dow was down 777. The 30-year treasury bond yield was 4.13% .
Today, the Dow was up 485 and the 30-year treasury bond yield was 4.31%.
It seems that while everyone was panicking yesterday and bailing out of the equity markets into treasury bonds. The excess demand drove up the price of the bonds (and therefore drove down the yield), I took a rare window of opportunity to convert our 5-year adjustable-rate mortgage into a 30-year fixed rate mortgage. At a rate BELOW our current rate, which we secured in a significantly better economic environment. Clever boy!
While making dinner last night, I turned on CNN to see what the talking heads were saying. "The credit markets are frozen!". Etc, etc, etc. Really? Why then, did it seem that the credit market for our mortgage was open? Not just a little bit, but I got five ... FIVE! very competitive quotes.
I think the media is playing a dangerous and potentially hazardous role in reporting the "crisis". Sure, there are lots of people who are in, or facing, foreclosure. But here's where I get a little crazy. These people should never have bought a house, and the banks should never have lent them the money! Is there no self discipline in this country?
OMG, I just sounded like Lou Dobbs.
Posted by dave at September 30, 2008 07:57 PM