Hey, I’m no expert. In fact, I’m quite a nervous Nelly when it comes to the stock market but I’m smart enough to know you don’t sell low and lock in your losses. If anything, now might be a buying opportunity for many investors especially those saving for retirement years ahead.
All those people who claim they lost their savings in 2008/2009 are the ones who panicked and sold during the declining market instead of staying the course.
Just something to think about😳
QUINNSCOMMENTARY 
Once again, I follow my rule of buying high and selling low. Just once I would like to catch a break. For all of you out there in the stock market, don’t buy on Wednesday because that is when I buy. As luck has it, my 401K buys every Wednesday and the Dow was up over 600+ points today. Just once I would have like to buy on Tuesday when it was at the lowest of the year..
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This could be the beginning of a bear market. Bull markets don’t last forever and this one is getting a little long in the tooth. Historically, bear markets are shorter lived than bull markets. If your investing horizon is years away, stick with your plan and view a downturn as a buying opportunity. If you are a short term speculator of are nearing the time when you planned to start withdrawing money,be cautious.
As far as the housing bubble goes, it didn’t start until 2000 and there were many causes. The community reinvestment act may have had an effect but I believe it was minor compared to other causes. The major causes were (bank deregulation, unregulated derivatives, poorly regulated mortgage markets, FED monetary policy, tax policy) just to name a few. There is no doubt that blame can be laid at the feet of politicians of both stripes.
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The fundamental cause was the government pushing subprime lending and unqualified buyers coupled with misuse of home equity. Banks clearly took advantage, but could not have done it were it not for the government policy years before.
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The bubble in house prices was occurring in many countries, not just here. How does housing policy in the US account for this?
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It wasn’t the bubble, it was the inability for people to pay the mortgage which started the chain reaction.
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Yes, it was the bubble
It was the inability of people to pay back the mortgage because the bubble had popped and the value of the house had fallen to the point where they could not cover what they owed with the sale of the house nor could the mortgage lender recover the loan value through foreclosure. Ordinarily, a foreclosure is not a problem if the collateral is equal or greater than the loan.
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That is not relevant if you pay your mortgage. I bought a house at a bubble in 1987 and the house was not worth what I owed for over ten years, I couldn’t remortgage to a lower rate which was 9.75%, but that didn’t stop me from making my payments. Now if I didn’t make the payments and the bank and investors lost, the cycle starts. The point is prices go up and down all the time and you need to be able to afford what you buy and in my mind that means a good down payment not 5% or less which of course, make it harder to make the monthly payment. Even now the govt is giving 5% down loans. We never learn.
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Take a look at this study. http://www.uvu.edu/woodbury/docs/summaryoftheprimarycauseofthehousingbubble.pdf
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Vote Democratic and leave your worries behind you. History shows that, with Democrats in power, our economy thrives and we are not at war.
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Keep that thought in mind and read the post coming 8/25
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http://www.dailykos.com/story/2012/09/02/1127055/-Which-party-is-best-for-the-economy-It-s-not-even-close#
Keep that comment in mind and read this
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What about the last seven and a half years?
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http://fortune.com/2014/07/29/economic-growth-democratic-presidents/
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I do not think that which party is in power has anything to do with the economy or wars. I believe when you do your research you will find that there have been a few small wars that were declared under Democrats such as WWI, WWII, Korea, and Vietnam. The Great Depression only end by the returning GIs spending their way out of the depression but government debt was still climbing from the wars.
The housing bubble started with Congress mandating HUD, Fannie Mae, and Freddie Mac to loan to low income people stating in 1992 and kept increasing the percentage of “affordable” housing to 58% even after the bubble burst in 2008. I believe during that time both Republicans and Democrats can share the blame.
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You are 100% correct.
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