Posted on 08/16/2007 5:12:29 AM PDT by SkyPilot
Just saw it on the news as second story after Peru earthquake.
Reporter said early overseas trends have analysts predicting this could be the 'worst day yet.'
Don't shoot the messenger.
(Excerpt) Read more at cnn.com ...
This whole sub prime “crisis” involves less than 1/2 of 1% of the total mortgage market. Most subprime borrowers are paying as scheduled. Foreclosures have more than doubled, yes; but they are still extremely low.
It is beyond me why the media wants to panic investors worldwide, unless it is a further symptom of Bush Derangement Syndrome.
I'm old enough to remember when JFK, LBJ and Nixon were in office. Systematically, the Drive-By Media try to wreck the economy when Republicans are in office. It was so when Nixon, Reagan, Bush I were in office. And they've been doing the same with Bush II. This isn't complicated. I will be so happy when Fox Business Network puts CNBC out of business.
Exactly. The fear mongers are feasting on a regular basis.
Did your friend name names of stocks that are good buys?
Actually, for what it’s worth, I’ve noted somewhere in my reading, that historically, (even throwing 1929 out of the sample) the best day to re-buy is October 25 each year after implementing a “sell in May and go away” strategy for your portfolio.
Reagan80
From another thread today(if Thompson times his entry right HE could benefit from any instability by being the new guy riding in to save the day . . .):
When Fred Thompson makes his long-delayed entrance into the Republican presidential race, he will not tiptoe quietly. Instead, he will try to shake up the establishment candidates of both parties by depicting a nation in peril from fiscal and security threats — and prescribing tough cures that he says others shrink from offering.
In a two-hour conversation over coffee at a restaurant near his Virginia headquarters, the former senator from Tennessee said that when he joins the battle next month, he “will take some risks that others are not willing to take, in terms of forcing a dialogue on our entitlement situation, our military situation and what it’s going to cost” to ensure the nation’s future.
It has reached into Alt-As (which are actually very close to Prime) and the housing crisis is real.
We are talking about a trillion dollars here for the US housing market alone.
America’s Trillion-Dollar Housing Mistake The Failure of American Housing Policy
A trillion here, a trillion there, and pretty soon you are talking about real money.
In Britain, real estate has also been out of control.
British housing 'worth £3.8 trillion'
If housing crashes (as it looks like it may) because of massive, massive over borrowing, the markets cannot ignore it.
Moreover, the housing mania of the last few years was madness - simple madness.
The crash is real.
My bet is that we get back to the Dow 10,000 range and discover that we cannot succeed as a nation with outsourcing manufacturing AND services while importing cheap illegal labor to drive down wages at home. We are in a long period of no real asset growth, just buried inflation. The inflation drops out of assets and into products as it shakes out, and . . . 10 years without real increase in wealth. What have we done as a nation that should increase our wealth? We aren’t making anything or providing services anymore relative to what we were doing.
Now do I know what I’m talking about? Nah. This is gut feel, not analysis.
This is not a subprime issue. It’s a RE valuation issue.
That being said, it will correct and by this time next year we’ll all be humming along wondering what all the fuss was about.
All these so called free market economy gurus are begging for a rate cut...Go figure...Everything is hunky dorie until the you know what it’s the fan...Then it’s, big brother can you help please and help right away...What a joke...CNBC just had some guy on the trade floor trying to make his point on the importance of a rate cut...He said that it would help the little guy out there who has recently purchased a home/motg...He didn’t seem to what to explain how that would help though...Go figure..The only ones that would benefit from a cut and that is in the short term, would be that of him and his rich buddies at Goldman...
Might as well call him Bernake Tiberius Nero. He is fiddling while the markets burn.
“Cheap” is a relative term..a stock is cheap only if someone wants to buy it at that price..The single biggest force driving market volatility now is computer trsding..it’s no different than the programmed trading that caused the late 80’s meltdown..Remember “portfolio insurance?”..the idea that the computers would sell at the right signals...and thus “protect” the valuations of the portfolios. This is the same crap..all these hedge fund geniuses have been riding the same wave...all doing the same things, with the same programs..and the tide has run out. But this time the lawyers are gonna come to the table..becuase in many of these financial derivatives, that drove the markets, there is a real question if the valuations were real..
Agreed.
You see the computer trading at close of market every day. Yesterday was a dull market in terms of the movement of the averages, until it became clear that the DOW would be below 13,000 at close . . . and then boom, around 2, 2:30, triggers were hit and bam . . . 170 point drop. It’s like an old Batman episode “ZOINK.” Computer trading is not the culprit though. Since the market depends on perception as much as value, the triggers would be there for traders whether or not they were computerized or scribbled on a notepad.
Of course but my scenario, given the fundamentals, is far more likely. One can always claim a catastrophe may befall the world economy. If you do it every day then like a broken clock you will be right sometimes.
Keep in mind the DOW follows earnings not the opposite and earnings are still growing by double digits.
Maybe I’ll buy today.
NEW YORK (AP) - The nation's largest mortgage lender borrowed $11.5 billion from a group of 40 banks to fund new loans, in a move that shows just how deep the lending crisis has become.
Countrywide Financial Corp. said Thursday it made the move amid a credit crunch that has driven a number of its smaller peers to bankruptcy.
"Countrywide has taken decisive steps which we believe will address the challenges arising in this environment and enable the company to meet its funding needs and continue growing its franchise," Countrywide President and Chief Operating Officer David Sambol said in a statement. The credit worries have grown as the secondary market for mortgages all but disappeared in recent weeks. Investors have worried about the value of loans and rising delinquencies and defaults.
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