3 Monday's ago, it was the Frannie Bailout.

2 Monday's ago, it was Lehman, Merrill, and AIG

Last Monday, the Bailout Buzz began, and we entered MBS Purgatory, trading above pre-GSE-bailout highs, but below post-GSE-Bailout lows. Here's the graph:

Judging by the extent to which the bailout has been crippled over the weekend, we'd expect to continue to languish until the bill is signed into law.

Even then, the impacts from this legislation will not be immediately felt (probably) in the same way the GSE bailout was. The naysayers of the bill may well get to find out what things would be like without it, at least this morning. Again, it's become diluted to the point that capital markets will likely respond with a unanimous yawn.

Whatever the case, the MBS board should light up in a few minutes. It will be interesting to see how the day pans out. We'd mention that the PCE is on tap today, but realistically, who cares?

More soon...