Quick news for today:
FNMA 4.5% mortgage backed securities quote at the close of the session: $100.09 so down 12 basis points. Investors are wondering about the $129 billion in T-notes hitting the market next week. The concern: investors looking to purchase a reasonable investment with a reasonable return look to mortgage bonds and other investments like t-notes. With a HUGE flood of supply vs. a stable demand we could see a deterioration in pricing. In other words: the investments are de-valued due to massive supply hitting the market.
Also weighing in: Feds announced that they may be planning to start selling off some of the $1.25 trillion in mortgage backed security holdings next year. This is an announcement with some of the same implications as above. The markets begin to anticipate massive oversupply. How big is 1.25 TRILLION dollars?
If you spent one million dollars a day
If you spent on million dollars a day it would take you just over 3422 years to spend it all...using 365.25 days a year to account for leap year. WOW. If I am wrong in my calculation let me know. That seems astounding.
A billion is a thousand millions so 1000 days spending one million a day.
A trillion is a thousand billions so 1,000,000 days spending one million a day.
250 billion is 250 thousand millions so spending $1.25 trillion is actually 1,250,000 days of spending one million a day.
1,250,000 days divided by 365.25 days is 3422.31 years.
Dang.
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Chad Schauers
Montana Mortgage Lender, Bozeman Montana
Personal Cell: 406 799 8613
Personal Email: metchad@gmail.com
