NEW YORK — Stocks plunged Tuesday, driving the Dow Jones industrials down more than 240 points to their second-biggest drop in almost four years, as troubles piled up for subprime lenders.Investors, bracing for a wilting economy, fled the already deflated subprime mortgage sector on more news that lenders New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit are facing financial problems. The Mortgage Bankers Association bolstered the belief that the struggles are widespread after it said new foreclosures surged to an all-time high in the last quarter of 2006.
All three major stock indexes were knocked down about 2 percent.
"The market's still jittery, and they're starting to get full-blown concerns over a bleed in the larger subprime mortgage market," said Matt Kelmon, portfolio manager of the Kelmoore Strategy Funds.
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4 comments:
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Geezer:
Wake up! LOL
Overall our economy is in big trouble! High foreclosures are not a good sign! The 'housing bubble' was the only thing that was keeping this economy afloat for the past couple of years!
Hang in there, S-Q, it's not time to worry - yet.
It's hard when stocks plummet, but balance it with the all-time highs just weeks ago. This is more of a correction from that than serious trouble.
Housing bubbles are like everything else. Today's hot area is ice cold as it gets too expensive and companies and people leave. Cyclical, with some winners, some losers.
Frankly, I thought the economy would crash with all the outsourcing of jobs to other countries. It was certainly unpleasant for a lot of families but one way or another we chug along, good years followed by bad years and round and round.
Not too many fun things about getting older but one advantage is having seen it all before. And we survive.
Hope I'm not lecturing too much, but my father taught me about finances. If you spend more than you earn you will not have money when you need it. You will make bad choices. Turn off the TV and do your homework so you'll be able to earn enough to buy what you want. Always save. Instant gratification is not the way to success, longterm planning and work is.
That's the real problem with Bush - Daddy bought him everything, and gave him more when he failed at everything. He thought he knew better than his father who worked his way up. He thinks he can do what he wants and no consequences because that's how he was raised.
Serves him right, but why the heck did we have to get stuck with him?
Captain kit:
Those are great words of wisdom from your father. It's too bad that isn't taught to everyone. I heard some scary statistics a few days ago. Only 80% of the U.S. population saves any money at all and 40% of those have $2000 or less in savings! But, what was even scarier was the fact that 60% of this country is now living paycheck to paycheck!!
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