Dow closes under 13,000

[Mavs Man]

http://news.yahoo.com/s/ap/20070815/...t.f6vDXmqyBhIF

The Dow dropped below 13,000 today after first crossing the mark in April (and after a high of 14,000 only a month ago).

Anyone else watching this?

The excess crap of subcrime (sic) lending practices has finally hit the fan. A check was much needed.

[Sasquatch]

I'm getting spanked but I think we will be up by the end of the year. I don't think the government should intervene and bail out unsound financial practices even though some stability would be nice.

[arglebargle]

This website has been cataloguing the collapse of the subprime bubble for a while. I saw it at the beginning of the year, and so am not surprised at the problems. Just a question of how bad it gets.....

http://ml-implode.com/

[Mavs Man]

Originally Posted by arglebargle

This website has been cataloguing the collapse of the subprime bubble for a while. I saw it at the beginning of the year, and so am not surprised at the problems. Just a question of how bad it gets.....

http://ml-implode.com/

I don't think the subprime mortgage market collapsing is a surprise - but this is the first time it's starting to directly affect markets outside of real estate / mortgages. I saw for myself how the subprime market was going during my job search last year at this time. One of the places I interviewed with was heavily into subprimes, and was no longer in business a week later. The others were starting to feel the crunch. Bear Stearns has been feeling it for months.

[Sasquatch]

Any thoughts on the past few bullish days on the market?

[Mavs Man]

Originally Posted by Sasquatch

Any thoughts on the past few bullish days on the market?

It's nice to have it going up a few days in a row, but we definitely haven't seen the last of the subprime mortgage/credit crunch.

Looks like the Fed has helped it a bit, but at what cost?

[burmafrd]

It seems Bernanke is willing to try and keep things stable but wants to cause lenders to be tougher on borrowers, which is a good thing. That is a different stance then the last chief had.

[BrAinPaiNt]

Originally Posted by burmafrd

It seems Bernanke is willing to try and keep things stable but wants to cause lenders to be tougher on borrowers, which is a good thing. That is a different stance then the last chief had.

I have heard he was one of the better appointees by bush.

I really don't know much about this stuff but many have said he was a very good hire for the position.

[Ben_n_austin]

Originally Posted by arglebargle

This website has been cataloguing the collapse of the subprime bubble for a while. I saw it at the beginning of the year, and so am not surprised at the problems. Just a question of how bad it gets.....

http://ml-implode.com/

I talked about his "sub prime" bubble a few years ago. About how the interest rates would come back to bite our economy. News flash! When banks are dropping their pants to borrowers, that does not mean we're doing well!

This has been going on since, well, right around the 9/11 attacks.

My guess is that it will get pretty bad, considering the housing market as opposed to the actual job market factored in with the current rate of inflation; and the instability of an election year.

My guess would be moderately to pretty darn bad.

Shall we host an episode of "Where are they now"?