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Old 02-20-2008, 02:17 AM
Yamtt125 Yamtt125 is offline
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Join Date: Jan 2006
Location: Orange, CT fish Norwalk Islands
Posts: 130
Default Re: Stock market/banking sector insanity

Brian,

Unlike you, I have relatively no experience in the markets because I am a junior in college, and I have never truely experienced market conditions like this before. I've only read about the crashes in 87' and tech boom in 01'. I find it very interesting to see how the market has been reacting resently, and how it will react in the future when the rate cuts by the fed should start to affect the markets (usually take about 6 months right?).

I have to agree with the hedge fund manager that this whole mess is not over with. Like you said, banks are still writing off billions of dollars, and they will continue to do so this year, except hopefully not as severe as last yr.

Its also scary to think about how much worse the housing market is going to get. A couple weeks ago, Businessweek published an article on the "Housing Meltdown" that did not completely surprise me, but anyone who was not paying attetion to the markets would be scared $hitless after reading it. Its not just the subprime loans that started the whole thing last summer. Many people don't know about the huge number or Alt-A loans and home equity lines of credit that were granted to people that they shouldn't have received it. For anybody that doesn't know, Alt-A mortgages are ones given out to people with good credit, but they do not disclose important info such as income, ect.

Anyways, its it very volatile times, and i feel it is will be for the majority of this year. Hopefully by the end of the summer and the fall, things will start to calm down a bit. Like Brian said, anybody who has investments should review them and mabey try to stay a little toward the safer side this year.
I am not saying sell everything and get out of the markets...after all, the main objective is to buy low and sell high and there are many equities that have taken a beating and are undervalued.

-Andrew
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