Stocks Dip on Bernanke’s Sobering Words
Just want to make a quick humor post here to lighten everyone’s morning. The headline above is actually the featured headline over at Yahoo Finance right now, and it left me feeling, “emotional”.
The headline just gets everything started, as the article cites,
“Wall Street extended its retreat Tuesday after Federal Reserve Chairman Ben Bernanke said the night before that the slumping housing market remains a ’significant drag’ on the economy.
Bernanke’s comments during a speech at the New York Economic Club revived concerns that a recovery from the summer’s credit crisis might take longer than expected — a sobering thought for investors, who are sifting through mixed third-quarter earnings and watching energy costs rise.”
I can’t help but ask, we are now just figuring out the housing market is in terrible condition?
The housing market is going no where fast regardless of the half a point rate cut, and the problem is JUST started to get cooking. Some eight million people are beginning or in the early stages of defaulting on the mortgages, so pull out the tissues if you didn’t know that as it surely is “sobering”.
The stumbling housing market is something that will play well into next year and affect more then, right now you have earnings disappointments and stocks at very high levels taking a breather.
What I wonder is why aren’t we more affected by the record setting oil prices? In the beginning of 07 every day oil was up it seemed the market was down, so what happened to that correlation?
Forget being depressed over Bernanke’s evening speech, I searched “sobering” on google images and guess what picture popped up first? Lindsay Lohan of course,
In fact, shes plastered all over the word. See the search results, laugh a little bit, wipe your tears, and get back to the desk alright?
Article Source:
Stocks Dip on Bernanke’s Sobering Words
Madlen Read
Time, Tuesday, Oct. 16, 2007
http://biz.yahoo.com/ap/071016/wall_street.html
The housing market is in trouble? Interesting. Who would have known? I guess Yahoo and the rest of the finance sites have to give some sort of reason for the down day.
Maybe if Ben B hadn’t spoken last night oil could get the blame for what is a much needed pull back from too quick of a recovery after the too brief correction.
I love those “emotional” headlines. They often make great entry points for new postions.
It’s amazing how the words of one man can have so much power over the markets.
Yes, well considering the fact my dad went bankrupt a few years ago and was STILL able to refinance their house without a job 3 times after that… yup, the housing market is going to hell, if its not there already.
reminds me of Warren Buffet, the man even mentions a stock ticker and everyone jumps on board
to hell I tell ya!
Maybe be a good time to save up some cash and pick up a couple foreclosures @ a deal.
Prices haven’t dropped much in Chicago, there pretty much the same as last year
I think all this bad news helped me on the forex. I had placed a couple bets against the USD, woke up, and wow.
Seems like the market bottom in real estate will be when the majority of people say “don’t buy property; it’s a terrible idea”.
That day is not today – still a year or two from now I’m guessing.