Stock Market
 

So, is it going to crash?

No, I don't think so. There are plenty of folks around who are able to take advantage of the situation, when the time is right for them.

The billions that seem to be evaporating never really never existed, except on paper. Unsound investments in mortgages, based on the real estate bubble everyone knew would burst sooner or later, by fund managers playing with other peoples money, then walk away with a "sorry, not my fault" and a personal fortune.

Wow, I thought it was just a bullshit claim of a crash in 2007. But I guess this isn't nearly as severe as they predicted but hopefully nothing bad happens.

*knocks on wood*

No -- it's just a correction -- just a bit more correct than was anticipated. It will eventually wind down and represent a huge buying opportunity.

No it will not crash. And hopefully the correction will allow me to purchase many more shares at a lower price.

B-b-but I thought there was no bubble and that prices can only continue to go up! "Buy now, or be priced out forever!" "Buy land, they've stopped making it!" How could anyone have predicted that this wouldn't last? :rolleyes:

Your right Kitsune, it's so unfair. We must bail these speculators out, after all, think of the children.

_

I don't think it's going to crash in the next few days, but I think we're headed for a world wide recession and a lot of 'middle class' people are going to be severely affected.

I believe that it's not going to "crash" but that it will effect people in large enough numbers that it will be seen as significant.

The value of the dollar is down and trending down, debt is going up and up. It seems to me that there is change in the near future.

Change that wont be seen as good news for most Americans.

Corrections happen. This will be but one of many. The central banks of many nations are kicking in money to help ease the pain by giving some liquidity to the guys who walked too close to the line. I just hope they don't go overboard and throw in too much. High, high risk investors (the fund guys) need to get a grip on reality and see that they must be responsible for the choices they are making with my money. I don't want it to tank, but some loss is normal and any investor must be willing to take the good with the bad. Like Merc stated, it will just give most of us the ability to pick up some good deals. There will be many unrelated stocks with values brought down by this correction. They will be the ones to watch and snatch up.

This is not going to affect just investors. This is going to affect your average joe who's just trying to pay off his or her mortgage. So many people are up to their eyeballs in debt and a rise of just a couple more percent is going to push a huge percentage of them over into the foreclosure market.

I'd lay money on it.

Only because the were stupid enough to buy more house than they could afford. If they had bought what they could pay for they wouldn't have had to buy into risky mortgage schemes.

Of course that's true Bruce. I think we all know people who've mortgaged themselves way higher than they should have, and there are some very attractive mortgages out there but when you do your homework you realise the whole scheme is a house of cards (almost literally).

The problem is that those mortgage companies are financed by major banks who're going to feel the pinch when the direct mortgager folds because their credit ridden clients can't pay their bills.

This in turn is going to push interest rates up for more stable borrowers who will then not have the money to invest in other items which is what drives the economy.

I predict that the knock on or trickle up effect will be a lot higher than some of our other members here seem to think.