Addison Wiggin taking note of rising mortgage rates this morning… hmmmn…

addison wiggin We received a curious reader mail this morning.

“Here is news that you can use in the DR,” it read, “and it’s not yet being reported elsewhere.” Except, perhaps, Mortgage News Daily on Tuesday.

The headline reads “Mortgage Rates Vault Catastrophically Higher”:

“There is no adequately descriptive language for movement in Mortgage rates today. ‘Vaulting catastrophically higher’ only begins to capture the brutality of the movement. Until today, December 7th 2010 had been the largest day-over-day increase in 30yr rates that we’d logged since ‘Black Wednesday’ — which was essentially the worst day for mortgage markets in the post-meltdown era (it’s a bit chilling to consider the date was 5/27/2009).”

“The important thing to understand,” Matthew Graham continues with Gen X dexterity, “is that the Fed’s asset buying is a very very very big deal, both to broader rate markets and to mortgage markets specifically. The pendulum is swinging back from April’s extremes and is being accelerated by changes in the Fed’s asset buying outlook — even though no changes in the asset buying have yet occurred.”

What? Only three “verys”? Dude, c’mon. Considering the Fed’s asset buying program has been the only program propping up the mortgage market for four years, we think that warrants at least six “verys”… if not more.

Last week, we cited Stein’s law: If something cannot go on forever, it will stop. Duh.

Today, we merely remind you. Eventually, all parties end. And when the drunks have all had their fill and left the house in shambles, some poor sap is always left to clean up the mess.
But who, we might imagine, leaves the party with a girl under each arm?

Threesome Rules
Photo from AskMen.com’s essay on Rules for Having a Threesome

“U.S. Bank Earnings Soared to Record $40.3 Billion Last Quarter Buoyed by More Income From Fees,” reads a headline on the AP newswire:

“U.S. banks earned more from January through March than during any quarter on record,” the report said, “buoyed by greater income from fees and fewer losses from bad loans. The largest banks are increasingly driving the industry’s profits while many smaller institutions continue to struggle.”

Of course, while the plight of small banks in the U.S. is unfortunate, it is by no means a reason to ignore the profit potential of the overall industry. After all, as Chris Mayer points out in today’s essay, “90% of all banks were profitable in 2012. And even in the gloomy times of 2008 and 2009, 77% and 70% of all banks still managed profits.”

Not bad, in other words.

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