Stock Market Down
Posted by AskSuperZJul 11
Stock Market Down!
Ok, I’m official and total mad at people mis-managing publicly traded companies. And on top of that, the U.S. government needs to make you’re there over seeing them in a much better way. I mean come on here, how can two of the biggest players (Fannie Mae and Freddie Mac) in the mortgage business be in so much trouble. And as always, when stocks drop oil climbs to record highs. The Dow Jones industrials fell more than 250 points, which dropped it below 11,000 for the first time in two years. I honestly never thought that the Dow would trade below 11,000 ever again, but I was wrong. Treasury Secretary Henry Paulson stated, “the government’s focus is ensuring that Fannie Mae and Freddie Mac keep operating in their current form”. Which he was countering reports from some that the government would announce plans to take over both of the companies. I really can’t trust our government to maintain any order. The only time they ever open their mouth crap comes out. They need to just watch what is going on around them. Because their mistakes are costing all American’s their life savings.
3 comments
Comment by Jeff Miller on July 12, 2008 at 6:18 pm
It was the option/minimum pay loans and dishonest mortgage brokers that pushed things over the edge.
Brokers were writing loans for people and qualifying them based on their ability to pay the 1%-2% minimum payment. When the minimum payment increases each year, faster than the non existent wage increases you start to have problems. When the loans recast in 3 to 5 years, and go from 1-2% to 5-7%, you have a huge problem. Note that the 2004 loans recast in 2007. What does this tell you about what is going to happen in 2009?
Note that this is assuming that the brokers where honest in the first place. In many cases, brokers were writing stated income loans and telling the borrower what they had to write in as their income to get the loan.
And the oil prices go up because the dollar falls.
Comment by Offgrid on July 12, 2008 at 10:44 pm
I would agree.
Comment by frostygirl on July 13, 2008 at 3:08 pm
you are not the only one who feels like that governments all over the world are just as bad
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