Housing slump = DJIA in the toilet

[rockgremlin]

Can someone who is saavy with the whole stock market thing explain what the heck is goin on with the stock market lately? It peaked at over 14,000 last month, and now it's in free-fall mode.....-320, and still falling.

The way I understand it, the subprime credit lenders have been too eager to give loans, and now we're seeing the results of many of those coming back as foreclosures. Am I way off base?

Metals prices have been following this downward trend, and copper is down $0.26 this morning...OUCH!

[Alex]

You got it right on the nose.....

I am losing my ass off to this Time to join the crowds and sell before I have to pay them to keep my stock

[savanna3313]

Can someone who is saavy with the whole stock market thing explain what the heck is goin on with the stock market lately? It peaked at over 14,000 last month, and now it's in free-fall mode.....-320, and still falling.

The way I understand it, the subprime credit lenders have been too eager to give loans, and now we're seeing the results of many of those coming back as foreclosures. Am I way off base?

Metals prices have been following this downward trend, and copper is down $0.26 this morning...OUCH!

It's not just the lenders and the housing market. Hedge funds are in big trouble as well. The Fed is adding money left and right, and the market is still tanking. I work in the real estate business and there in not one single investment loan available out there. This really sucks since I work with mainly investor clientele. Over 122 lenders have closed their doors in the past few weeks. These were mainly subprime lenders, but take a look at Countrywide today - down at one time over $4. That's on top of yesterday's decline of more than $3. It's getting kinda scary......

[Jaxx]

part of the problem I suspect is people are getting scared and bailing.

[rockgremlin]

part of the problem I suspect is people are getting scared and bailing.

Yes, I suspect this as well. One of the floor-traders remarked today that "Emotion is trumping rationality in this trade."

[savanna3313]

part of the problem I suspect is people are getting scared and bailing.

Don't forget another huge catalyst........can you say Margin Call???

[sparker1]

There are also some with profits they want to take before they are gone. I moved almost half my stock portfolio to cash about 2 weeks ago. I wish I had cashed in the whole thing.

[rockgremlin]

WoW! Anyone else watching this? The DJIA has rallied from -330 points to -63 points, and it's gaining rapidly! How bizaare...

[Alex]

The Febs just injected $17 bil into the market to keep the Dow from puking....so much for the capitalistic country, Yay Socialism!

[rockgremlin]

The Febs just injected $17 bil into the market to keep the Dow from puking....so much for the capitalistic country, Yay Socialism!

It goes from negative 330 points to close at minus 15. It was actually positive there for a minute. What a rally!

Stupid subprime lenders! grrrrrrrrr!

[scoutabout]

The Febs just injected $17 bil into the market to keep the Dow from puking....so much for the capitalistic country, Yay Socialism!

It goes from negative 330 points to close at minus 15. It was actually positive there for a minute. What a rally!

Stupid subprime lenders! grrrrrrrrr!

I was listening to Rush Limbaugh while I took some friends to the airport this morning, and he is taking credit for the bounce back in the market yesterday. He is talking to 20 million people at any given time, so it's not too far fetched, but not too likely either.

[Iceaxe]

I was listening to Rush Limbaugh

Don't let stefan hear you say that....

[R]

The thing about any broad market is this: stay in it for the long haul. As long as the economy grows, it will grow. Ignore the setbacks.

[Iceaxe]

And anther great tip.... Guaranteed you will make money following this simple strategy.

Buy Low - Sell High