Thought for the day:
1. MBS backed bonds continue to fall at a rate only the most bearish bloggers could contemplate.
2. This is putting various hedge funds at risk (when compounded by the deflation in commodities).
3. One decent sized bank failing would "wake up" the system.
4. Several builders have to be feeling the cash flow pinch; an inopportune failure could push the market down.
So... the question, could we have a stock market drop on February 14Th 2007? If so, I already know the name for the day. I'm thinking that the market is getting nervous enough that one bit of bad news late Tuesday could push Wednesday's stock market down.
This could be interesting... maybe not 2/14/2007, but soon. I haven't "felt" a financial environment like this since the dot com bust.
Due to the time its been since we've last had a 2% market correction in a day... I'm not sure the next one will be a single digit correction. In fact, I'm betting before we see a 2% to 4% correction day we'll see an 8%+ correction in stocks.
Got popcorn?
Neil
1 comment:
Ok, I missed this one. But Whiskey Tango Foxtrot, who would have predicted a big market jump on the rumors of a merger?!?
Oh, USA today on Atlanta home prices:
http://www.usatoday.com/money/economy/housing/2007-02-12-close-atlanta_x.htm
Next week: Sacramento! ;)
Got popcorn?
Neil
Post a Comment