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PS. The sad drop in the stock markets is eroding my ability to buy that future home due to significant drops in my portfolio and even 401k, another domino falling that is causing further pain. It's an incredibly nasty chain reaction that could sink the USA economy for months or years to come.
So you guys continue to blame the media - me, I'll blame the morons who bought houses that were typically beyond their reach, and the morons who lent them money. I'll add in blame on Bush there, since he's given us nothing but pain and misery the last 8 years.
In a shocking deal reached on Sunday to save Bear Stearns, JPMorgan Chase agreed to pay a mere $2 a share to buy all of Bear — less than one-tenth the firm’s market price on Friday.
JPMorgan is buying Bear, which has 14,000 employees, for a third the price at which the smaller firm went public in 1985. Only a year ago, Bear’s shares sold for $170. The sale price includes Bear Stearns’s soaring Madison Avenue headquarters.
The agreement ended a day in which bankers and policy makers were racing to complete the takeover agreement before financial markets in Asia opened on Monday, fearing that the financial panic could spread if the 85-year-old investment bank failed to find a buyer.
Even with the frantic rescue operation, world markets were roiled as the trading day began. In Tokyo, the Nikkei index ended down 3.7 percent, while European markets were down around 3 percent in midday trading. In the United States, stock futures were down sharply before the opening on Wall Street, and investors faced another week of gut-wrenching volatility in American markets.
Despite the sale of Bear, investors fear that others in the industry, like Lehman Brothers, already reeling from losses on mortgage-related investments, could face further blows.
I have been saying this for a while now. People its getting worse. Don't worry Kalim just wait and the stubborn homeowners will sell in a year or two for 20-25 percent less than what they would have gotten today. But listen to some people that are selling and they say ITS TURNING AROUND. Wishful thinking on their part. When the market drops another 300-500 points today, and a 1000 in the short term and a few more banks go under and with foreclosures up and down the block and people realize that there home isn't worth what they think its worth. That is when you will see the economy stabilize. Hold on its going to get ugly.
Last edited by JERSEY MAN; 03-17-2008 at 07:29 AM..
I was talking to a couple yesterday afternoon. They were complaining to me about the realtor that they just got rid of. Of course my ears perked open a little bit more. They told me that their realtor told them that in order to be competitive in the market that they would have to drop their price $40k.
They refused.
18 months on the market, without a bite.
This time the realtor was right.
All realtor aren't bad guys.
To add to what JM said, it will be getting uglier before it gets better.
I have been saying this for a while now. People its getting worse. Don't worry Kalim just wait and the stubborn homeowners will sell in a year or two for 20-25 percent less than what they would have gotten today. But listen to some people that are selling and they say ITS TURNING AROUND. Wishful thinking on their part. When the market drops another 300-500 points today, and a 1000 in the short term and a few more banks go under and with foreclosures up and down the block and people realize that there home isn't worth what they think its worth. That is when you will see the economy stabilize. Hold on its going to get ugly.
All I'm saying is that most people have substantial assets in the stock market, whether in their personal portfolios or 401ks, and the problems in the housing market and elsewhere are starting to erode people's abilities to buy NEW homes because of their shrinking short term assets (ie. money, cash, moolah).
It's a negative feedback mechanism that really sucks.
Stock Market and your 401Ks are going into the toilet along with the housing market as well.
Which makes for a rather profitable time in the market, imho. Much like houses, I don't purchase investments to wait a few months and see some ridiculous increase. You pick your purchase carefully, and expect it to take time.
This seems to be lost on many investors today, real estate or not - the quick buck gets them. Then they don't understand how you can't make that quick dollar anymore, and get scared - emotion is never good in any investment - and they book, cutting their losses. Or, they got emotional and purchased when they couldn't afford it, and are unwilling to cut their losses because they are attached to that big number too much.
Either way, it will continue to effect the RE and stock markets. I will continue to buy up everyone else's mistake (thats worth it) I can afford.
ever hear of the expression day trader, the key is to buy solid companies, and hold for along time! If you watch it everyday you dont belong in the market.
PS. The sad drop in the stock markets is eroding my ability to buy that future home due to significant drops in my portfolio and even 401k, another domino falling that is causing further pain. It's an incredibly nasty chain reaction that could sink the USA economy for months or years to come.
So you guys continue to blame the media - me, I'll blame the morons who bought houses that were typically beyond their reach, and the morons who lent them money. I'll add in blame on Bush there, since he's given us nothing but pain and misery the last 8 years.
In a shocking deal reached on Sunday to save Bear Stearns, JPMorgan Chase agreed to pay a mere $2 a share to buy all of Bear — less than one-tenth the firm’s market price on Friday.
JPMorgan is buying Bear, which has 14,000 employees, for a third the price at which the smaller firm went public in 1985. Only a year ago, Bear’s shares sold for $170. The sale price includes Bear Stearns’s soaring Madison Avenue headquarters.
The agreement ended a day in which bankers and policy makers were racing to complete the takeover agreement before financial markets in Asia opened on Monday, fearing that the financial panic could spread if the 85-year-old investment bank failed to find a buyer.
Even with the frantic rescue operation, world markets were roiled as the trading day began. In Tokyo, the Nikkei index ended down 3.7 percent, while European markets were down around 3 percent in midday trading. In the United States, stock futures were down sharply before the opening on Wall Street, and investors faced another week of gut-wrenching volatility in American markets.
Despite the sale of Bear, investors fear that others in the industry, like Lehman Brothers, already reeling from losses on mortgage-related investments, could face further blows.
Dow closes with a gain....
Headlines at 7am WSJ:
Stock Market Plummets as Bear's
Buyout, Fed Move Stun Investors
(Printed hours before the bell)
That for sure is media frenzy.
All I'm saying is that I have a guess that now, properly researched and funded, is the time to buy. The difference is that many on this board are adament about how it's gonna be and when no one can predict any market with any certainty. But the best investors look through the windshield not the rear view mirror!
if you think GE and Pepsi are not solid companies and will go bankrupt then dont invest. Quote from my brilliant DAD!!!
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