Stock Markets crashing?

[faceless]

[web]https://newsvote.bbc.co.uk/1/shared/fds/ ... efault.stm[/web]

I'm not that much up on global stock markets, but this doesn't seem very good... the american Dow Jones has dropped 14 points since I previewd this post...

I wonder if there will be any corporate execs jumping off skyscrapers?

[11antoniacourt]

I'm not sure they'll be jumping. Yet. At first I thought it was because this is the time of the month when 2nd quarter earnings would be posted. But I think they're all talking about the drop being due to subprime lenders taking a beating because of the housing market slump. Subprime mortgage loans are for people with bad credit scores and the interest rates are higher than loans available to people with good credit. Because a bad credit score is considered a risk, right? With the housing slump people can't get out from under their mortgage loans so they are strapped with mortgages they can't meet. The subprime lenders are taking a beating, but screw 'em I say. Unfortunately this has been building up, I would guess since hurricaines Ivan and Katrina. People are bailing out of Florida in droves and certainly there's not much building there, or anywhere else at the moment. But, tomorrow is another day so we hope for the best.

[faceless]

thanks for that - that makes sense.

Cockroaches feeding off the poorest consumers within the market therby giving the illusion of strength just long enough to make their money and get out again before it collapsed...

[11antoniacourt]

I'm not sure they'll be jumping. Yet. At first I thought it was because this is the time of the month when 2nd quarter earnings would be posted. But I think they're all talking about the drop being due to subprime lenders taking a beating because of the housing market slump. Subprime mortgage loans are for people with bad credit scores and the interest rates are higher than loans available to people with good credit. Because a bad credit score is considered a risk, right? With the housing slump people can't get out from under their mortgage loans so they are strapped with mortgages they can't meet. The subprime lenders are taking a beating, but screw 'em I say. Unfortunately this has been building up, I would guess since hurricaines Ivan and Katrina. People are bailing out of Florida in droves and certainly there's not much building there, or anywhere else at the moment. But, tomorrow is another day so we hope for the best.

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did you mean to post the same thing twice?

It was worth reading without a doubt... haha

[11antoniacourt]

how the hell did I do that?