Stocks Plunge As Bank Suspends Home Loan and Mortgage Operations
Filed under: Business, News | By: Roy
Posted on: August 9, 2007 | 3 Comments
As soon as trading began today, stocks plunged as a large French bank, BNP Paribas, suspended three of its funds in light of the recent crumbling in the US housing and mortgages market.
Due to these home loan fears, the Dow Jones fell over 200 points and the S&P 500 and the NASDAQ plunged with the Dow.
Stocks have rebounded slightly, with the Dow down 105.92 or 0.78%, the S&P down 4.54 or 0.16% and the Nasdaq down 13.04 or 0.87%.
These home loan and mortgage concerns just aren’t going away and companies are trying to calm the fears surrounding the home loan and mortgage market. Despite mortgage applications rising 8.1% last week, some influential Democrat politicians are calling for the government to do more to support the mortgage industry.
But market analyst Sam Kirtley of The Gold Prices Newsletter doesn’t think that the government will be able to cure the problem:
“All the government can do is delay the real estate doomsday, they cannot stop it. The US real estate market is in for a major crash, as are other housing markets around the world. The market has been over inflated by the government printing paper money which actually has no real value. Gold is the only real money and it will do extremely well over the coming months. Gold and gold stocks are a great investment at the moment in my opinion.”
Do you think the home loan and mortgage markets are in for a crash?
Is the US real estate market going to recover from this current turmoil?
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Interesting information, i definitely won’t hold my breath as the government pulls the market out of the hole. I did read a report last week that predicted this which i wish i had taken more seriously. I hope theres a better prediction by the government on how we will get out of this.
http://www.dailyreckoning.com/rpt/HousingReport.html
You are completely right. Only it is not the government printing the money, it is a private company that people are fooled into believing is part of the government. “The Federal Reserve” If you dont believe that they are not government check it out for yourself:
http://en.wikipedia.org/wiki/Federal_Reserve
The only way out is for eveyone to invest everything they have in something real, such as gold or silver.
The Federal Reserve directs the printing of the money, and they have put too much into circulation. This has brought about the real estate crisis, and will continue to erode other sectors of the economy. The amount of “new” money used to be published, but was curtailed several months ago. The Federal Reserve should have been dismantled many years ago because it violates the provisions of the Constitution that allows only the government to coin money, and that only of gold or silver. The Keynesian economic model of deficit spending was fallacious, yet adopted by our government to the demise of very future generatiions. The Federal Reserve in cahoots with the federal government is fast running out of manipulative moves. There will be no short term recovery.