Economy Is Not As Healthy As Predicted

CHUQ

Markets have been losing steadily. Good sign or bad? A correction?

US stock markets fell heavily on Friday after a wild and volatile week.

The Dow Jones, which saw triple digit gains on Wednesday and Thursday, fell by 2.1%, 284.8 points, to 13,178.5. The Nasdaq lost 2.5% to 2,511.25 points.

Selling was driven by continuing concerns over financial institutions, especially sub-prime lenders, and its knock-on effect to the credit market.

A Bear Stearns top executive said that credit markets were in the worst turmoil he had seen in 22 years.

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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

It looks like handing out credit like candy has caught up with the lending companies. It should cut back the junk mail at the mailbox. Laughing

Things have been going a little too smooth for the stock market. Housing is taking a hit too. A couple of more bad economic reports and we could see a big stockmarket correction.
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CHUQ · Posted: Mon Aug 06, 2007 4:19 am Post subject:

With the safe guards in place it will take a huge prob to erupt for the big correction. THe credit prob will be smoothed over by some other good news and the markets will return to normal, whatever that is.
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CHUQ · Posted: Fri Aug 10, 2007 3:44 pm Post subject:

As I predicted, thye Fed is pumping money into the markets to head off a major prob in the subprime affair. This was announced today on CNN.
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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

There seems to be a lot of contributing factors, some of which we have no control over. Loan defaults and a slump in the housing market seen to be a couple of the most recent ones.
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CHUQ · Posted: Sun Aug 12, 2007 5:15 am Post subject:

Greed got the companies into this place. The people were fooled into the loans and then it bites them in the ass. It is no different than the junk bond thing back in the 80's. Greed and stupidity!
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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

The stock market saw all the contributing factors to this latest crisis long before we did, but they chose to ignore it. I've thought for a long time this was going to come back and haunt them. Maybe a tightening of credit in the short term is just what the economy needs .

They seem to be looking to the feds to bail them out, which is just a band-aid for the problem.
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CHUQ · Posted: Mon Aug 13, 2007 4:07 am Post subject:

That is how it works, the Fed will do all it can to keep venture capitalist from losing anything.
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CHUQ · Posted: Fri Aug 24, 2007 4:55 am Post subject:

SH*T! I reported this the other day in my blog--I hate been the last to know anything.

European stock markets retreated in early trade, amid persistent fears that US credit woes could spread.

The dip followed a slide in Asia, ahead of key US figures and on news that some Chinese banks were more exposed to US sub-prime problems than thought.

US data on new homes sales is keenly awaited after major lender Countrywide Financial warned the current housing slump could trigger a recession.

World markets have been in turmoil amid fears of a looming US credit crunch.

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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

The credit companies aren't out of the woods yet. The feds can't bail them out forever.
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CHUQ · Posted: Sat Aug 25, 2007 2:24 am Post subject:

The financial markets suck, but the telling report will be the CPI, if that is in the toilet then IMO, a recession is coming.
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CHUQ · Posted: Sun Sep 09, 2007 3:59 am Post subject:

More stats that have not been reported on the major media sources.

Sept. 6 (Bloomberg) -- The number of Americans continuing to receive unemployment benefits rose to a six-month high, suggesting that hiring has cooled, even as new applications fell more than forecast last week.

Benefit rolls swelled to 2.598 million in the week ended Aug. 25, the highest since February, the Labor Department reported today in Washington. Initial unemployment claims fell by 19,000 to 318,000 in the week that ended Sept. 1.

Heightened concern about economic growth may be causing companies to cut spending and hiring. Federal Reserve Chairman Ben S. Bernanke said last week the central bank would ``pay particularly close attention to the timeliest indicators'' and do what's needed to prevent the recent credit-market rout from undoing the six-year economic expansion.

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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

Looks like the feds will be cutting rates again. Laughing

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CHUQ · Posted: Mon Sep 10, 2007 2:43 am Post subject:

That is what the markets are counting on. If they do not cut then the prob will snowball and we cannot have thyat, so gthe rate will be cut about a quarter point.
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Tumbleweed · Black Ops Joined: 02 Jul 2007 Posts: 3687 votes: 3

Giving the cheaper rates won't solve the problem. There is nothing to keep them from making the same mistakes.
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