In Support of the SRS Trade

You may be surprised by just who in fact may be telegraphing the collapse of the Prime real estate market, none other then Fannie Mae. Don't take my word, do some research right from their site.

Among their projections: 10 year treasuries to plunge, New and Existing home sales to fall by 7.1-7.7% next year, Mortgage origination to decline by over 21% compared to the first 6 month of 2011 (Jack, thoughts?).

Of course words don't compare to actions and if you look up Markit and their PrimeX averages, you'll see the "money where your mouth is" trade, running, not walking, out of prime loans.