Clio Posted August 21, 2007 Posted August 21, 2007 Rather surprised all you world watchers didn't pick up on the housing bubble burst, the low-level panic in the financial markets, and the extreme credit crunch that is starting. Soon you won't be able to buy and sell without government approval to keep this kind of stuff from happening. Read MSM, Bloomberg, etc. Price of T-Bills skyrocketed over 18% in 3 days. Quote A heart where He alone has first place.
Moderators Bravus Posted August 21, 2007 Moderators Posted August 21, 2007 Oh, I noticed... having just started share trading a week before the crash, and with a 40% loss of value of my modest portfolio, it kinda got my attention! Crawling back slowly now... which is logical because the fundamentals in Australia are still good and the selling her was just a panicked response to the US situation. The subprime crisis was predictable long agao, as soon as the loans were pushed so hard and the highly leveraged approach to securitizing and selling the risk was developed. This is one of those 'the sky is black with chickens coming home to roost' moments. (Complete deregulation and the unfettered market has consequences, who knew?) The housing bubble itself (in Australia as well as in America) has been driven by too-easy credit, so that prices no longer resemble the real value of the homes. It's made housing unaffordable for most Australians, and people are finally waking up to the fact that owning (with the bank) a house that's worth 3 times what you paid for it doesn' actually make you any better off financially, because you have to live somewhere. Think it might be a little premature to ring in the Last Days, though... this is comparable with similar market corrections that we've seen 3-4 times in the past 20 years, and will see again. Quote Truth is important
Clio Posted August 21, 2007 Author Posted August 21, 2007 Glad you feel that way Bravus. It certainly seems to have gotten your attention though, since I'm not ringing in the "last days". Quite a number of banks are not issuing mortgages. Capital One is shutting their mortgage ops down and laying off 1900 people, Wells Fargo has had a 100% nationwide "outage" for 48 hours, and has halted all mortgages and Country-Wide is in trouble. Quote A heart where He alone has first place.
Neil D Posted August 22, 2007 Posted August 22, 2007 We saw it...what's to say? Ain't gonna change anyones mind...we are all pretty entrenched in what is being said... Quote Democracy is a device that ensures we shall be governed no better than we deserve. George Bernard Shaw
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