Bernanke thought that by buying mortgage bonds, mortgage yields would drop. And they have, but only very slightly. The mortgage bond fund, MBB, is just over 109, where it was in late July. He’s already wrong on that. But, wow, look at the government bond security, TLT. It took a big beating from QE3. In the last 9 days, it fell 10 points, from 128 to 118. The 0.6% inflation number for August played a part, but not that much. The inflation-protected bond (TIP) rose by about 1 percent to a new high. With government bonds falling in price and … Continue reading QE3 Already Has Gone Wrong