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Discuss Bad news for stocks! at the Non Wrestling Talk within the Wrestling Talk Forums; Supposedly a new report came out in the last hour of trading that said American ...
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    Big
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    Default Bad news for stocks!

    Supposedly a new report came out in the last hour of trading that said American lending firms are crumbling big time and foreclosures are up something like 60%. The Dow immediately erased all its gains for the day and then lost 150 points.

    Even I feel puzzled by this.

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    Default Mortgage appls at 5-year low

    The housing market is still going down.

    http://biz.yahoo.com/rb/070801/usa_e...ages.html?.v=1

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    Default Mortgage appls at 5-month low

    To correct my prior msg.

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    Default Re: Bad news for stocks!

    I wrote abouth this 3-4 years ago when the negative am mortgages raised it's ugly face again. They were sold with 4-4.5% adjustable rates and a 1-1.25% payment with interest accuing. The accrual erodes your equity overnight, then the rates adjust higher and more equity is lost. Go to sell in down market and you're headed for a big time loss. The sole option to stop paying, let the house be sold for default. Even the lenders are having a hard time recouping the full principal of the loan.

    Alternately, 4-4.5%, 1-3 year adjustable rate loans were taken out and they have now adjusted to 7-7.5% which means on a 30 year loan, your required monthly payment has nearly doubled. Not too many can hold that payment when you were sucking wind to make the 4-4.5% payment.

    Most affected by this - low to middle market housing. The multi-million dollar homes haven't been affected as greatly.

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    Default Re: Bad news for stocks!

    WT....
    I hop on here at 3:45. The Dow is down 30, S&P down 12.

    It's now 4:06 The Dow is up over 150 and rising and the S&P is up 14.

    That's an incredibly fragile market that swing can over 1% of the total value in the matter of 20 minutes.
    Last edited by RYou; 08-01-2007 at 04:17 PM.

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    Big
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    Default Re: Bad news for stocks!

    Another nearly 300 point loss for the Dow. What to do 401Kers?

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    Default Re: Bad news for stocks!

    Quote Originally Posted by Big View Post
    Another nearly 300 point loss for the Dow. What to do 401Kers?
    I'm not planning on tapping in to my 401 for over 20 years, so I'm not very concerned with what the market did today, this week, or this month.

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    Big
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    Default Re: Bad news for stocks!

    Yeah but as of now the Dow rose maybe only 1000 points since Bush took office.

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    Default Re: Bad news for stocks!

    Big, I first bought into a 401K in 1991, and I've been putting more money into the market every two weeks. I didn't pour my life's savings into the market on the day that Bush was elected. With a 401K, you buy when the market is going up, and you buy when it is going down. Over the last 100 years (or whatever) the market has been a very good long-term investment, so I'm not concerned with daily swings.

    The bond market is a different issue in the short term, as it affects payments to retirees, as well as those sucker-bet adjustable rate mortgages.

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