Watch Out Below!!!
Market Alert! 2008.07.11
Good morning, or is it?
Some of the bigs banks are down 10% or so in pretrading this morning, and Freddie Mac and Fannie Mae are set to open 30-40% lower than yesterday's close. And they have been spinning out of control all week. I heard that Freddie and Fannie own something like 40% of all mortgages, and they are both just about to go under. There is now talk of a $1 trillion government bailout...but the last I checked the U.S. government was already bankrupt, so where is that money going to come from? All I can say is that several years back they mantra on the Street was "Gold is old," but now my mantra is "Gold is King."
Today may be the day that breaks the banks. And if Freddie and/or Fannie are on the way out, my guess is the BKX is going to break down. Since we ended the day yesterday with the BKX at 55, if we were to lose 10% more today, that would put the index around 50. And if we go into next week with the BKX sitting at 50 after a big Friday fall, all I can say is watch out below!!!
We will know exactly how this will play out later. Until then, Happy Investing!
Gregory
Good morning, or is it?
Some of the bigs banks are down 10% or so in pretrading this morning, and Freddie Mac and Fannie Mae are set to open 30-40% lower than yesterday's close. And they have been spinning out of control all week. I heard that Freddie and Fannie own something like 40% of all mortgages, and they are both just about to go under. There is now talk of a $1 trillion government bailout...but the last I checked the U.S. government was already bankrupt, so where is that money going to come from? All I can say is that several years back they mantra on the Street was "Gold is old," but now my mantra is "Gold is King."
Today may be the day that breaks the banks. And if Freddie and/or Fannie are on the way out, my guess is the BKX is going to break down. Since we ended the day yesterday with the BKX at 55, if we were to lose 10% more today, that would put the index around 50. And if we go into next week with the BKX sitting at 50 after a big Friday fall, all I can say is watch out below!!!
We will know exactly how this will play out later. Until then, Happy Investing!
Gregory
Well Greg, another rough day today, IndyMac Friday, I guess someone like me would like to think that maybe the news can't get any worse....but gas is still $4+, homes around here and in Florida where I've been lately are sitting empty, and times are tough. What do you think about the Russian Economy these days?
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