WTF!! Mortgage Backed Securities????

So, I just went to rebalance my investment account and the "new model" wants me to take a 5% position in Mortgage Backed Securities.

Ummm....does anyone think this is a good idea?

 

Lol.

 

Depends on the price offered. If they're trading at a couple hundred bps off Treasuries, then probably not. If they're trading 500+ bps higher, then probably yes.

 

I'd rather play roulette.

 

I think the new "model" is meant to get the suckers to take that crap off the hands of the bag holders.

 

I expect Barney Frank thinks it's a good idea.