Well, some have been predicting a crash in the markets for some time, and while it is not a broad based crash (yet), the plunge in the Financial sector that has occurred this week, more especially today, makes this a Black Friday in my opinion.
Fannie Mae and Freddy Mac, the to goliath mortgage finance companies that are backed by the government, crashed 39% and 45% respectively today, bringing the financial markets to their knees and bringing the Dow to its lowest intraday point so far in 2 years - below 11,000 points.
And it's only July.
In some ways I'm nervous to see what happens in September and October, which are known to be stormy to downright terrible months for the markets even in stellar years. The economy is shaping up to be a "perfect storm" that I don't think either Presidential Candidate has any qualifications to resolve. We could be in for quite a ride, and unfortunately, a lot of losses.
Here are some articles that should be a wakeup call. Now is a good time to save money (in cash accounts - not securities), and to move your current stock investments into dividend yielding stocks and bonds.
I'm not sure what this means for the housing market as a whole, or what it means for people who want to get into a home, but I wouldn't get into a mortgage right now without qualifying for FHA, which was made during the depression years to get people into homes, so an FHA insured loan should be able to ride out any stormyness.
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Tijs Limburg
Chairman and CTO of DMX - Digital Media eXceleron, Inc.
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The "Don't Tread on Me" Flag: The First Navy Jack is enjoying renewed popularity these days thanks to an order from the Secretary of the Navy that directs all U.S. Navy ships to fly the First Navy Jack for the duration of the War on Terrorism.
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