Apparently folks are depressed at the university of Michigan. Who knows if conditions are really getting an "F," but the sentiment index has us at 57.5. Last month was a whopping 70.3. Yikes! Consensus was for 66.0.

In news earlier this morning, housing starts were reported abysmally low. Surprise surprise? no? Oh right... Huge recession...

MBS are playing by the rules into this 3rd hour of the session. We've been calmly range-bound yet again and are currently up 6 ticks at 100-22 on the 6.0 coupon.

Granted, the weather is getting a little colder these days, but if you have the fortitude to float, we promise to keep you warm. Stay tuned.... The .VIX is off the chart, so volatility is a real risk. If, however, we keep that same nice smooth trend from yesterday, our conclusion that "TARPtimism" is trickling into the market will be further edified.