London Stock Market Recovers After Mortgage and Home Loan Scares

After over £50 billion was wiped of the value of the stock market in London, shares have begun to recover this morning after central bank launched massive cash injection operations to ease liquidity problems and support the market.

The FTSE 100 share index in London is currently up 102.20 or 1.69% at 6,140.50. The FTSE index has reached 6160 in the first few hours of trading but those gains have eased slightly.

However is the crisis over?

Market analyst Sam Kirtley of The Gold Prices Newsletter thinks that this may only just be the beginning: “We believe that mainstream markets are heading for a major downturn as the economy heads into a serious recession in the coming years. The real estate bubble has been over inflated by credit and its poised for a crash. In this crash, precious metals such as gold will do very well as investors flock into gold and silver as a “safe haven” and so we believe gold and gold stocks are a very good investment right now.”

Do you think that there is more trouble to come in the mortgage and home loan markets?

Or have we seen the end of the bad times in the mortgage market and stock market?

What do you think?