Bubble Bursting?
Has anyone been watching the markets this week? Everyone is getting shellaced. I’ve already heard today called “Black Friday” and a whisper that Bank of America’s bond trading desk is down $150 million. The rest of the country has seen their housing market badly injured at best and we have all been holding our breath…
Has anyone been watching the markets this week? Everyone is getting shellaced. I’ve already heard today called “Black Friday” and a whisper that Bank of America’s bond trading desk is down $150 million.
The rest of the country has seen their housing market badly injured at best and we have all been holding our breath knowingthat our market follows the banks….
Gee, there seem to be an awful lot of people trying to scare us this morning.
Gee, there seem to be an awful lot of people trying to scare us this morning.
Edited for those with delicate sensibilities:
The NYC market is not going to be ok. Yesterdays blip down scared a lot of people but it is just a tiny move compared to the run-up in index values (if not true values – the us dollar has swooned world-wide lately so true values in terms of world currencies have probably gone sideways).
Anyone who thinks the entire country can suffer through housing doldrums for the next two years (see todays news) but nyc is left “mostly ok” is just making stuff up. Lunacy! wall street can’t support nyc by itself, and wall street is supported, ultimately, by the consumer economy around the country, it isn’t a bunch of suits selling stuff back and forth to each other (although recently i thought that had become the case).
This can fall further. What would be considered a brownstone valuation tragedy by most here would merely be a revert to values seen in 2004 or 2003. Hardly a disaster. Yet it is clear that if this occurs many posting here would be frozen – unable to sell+move for pleasure, for fear of recognizing their large equity paper loss. They better hope their job doesn’t downgrade or move, or they don’t get divorced, or have unexpected medical bills (Seen sicko?) or any one of all the other problems people cope with ok when they have a proper $ cushion, not just some paper numbers estimated by looking up the “just sold in” column in the ny times.
(At the time I edited this it looks like the market has not bounced back despite the economic growth figures).
The above statement is partially true.
I disagree that the drop in treasury yields will result in people in being able to afford to pay more for a home.
That is because credit standards have tightened and spreads to treasuries have tightened.
In many cases this has made homes less affordable despite the drop in yields.
well treasury bonds rallied yesterday as people took money out of the stock market and riskier bond issues were delayed or canceled. This has caused the yield on treasury bonds to drop significantly.
Since mortgage rates are based on the treasury yield this will cause them to drop.
Lower interest rates mean people can afford to pay more for a home.
Also, this morning it was reported that the economy grew at a faster pace than expected so the underlying fundamentals – minus housing – are strong. The housing issues don’t appear to be hitting NYC yet, they are mostly in those parts of the country that have been overdeveloped by companies like Toll Brothers.
So, I think you are going to be OK.
I don’t know if it’s a big number. Obviously to a non-financial person it sounds big. When I was told, I think that I was supposed to think that it was a big number. Was I wrong?
Is a $150 loss for BofA’s fixed income desk supposd to be a large figure?
You have got to be kidding me.
I know that we don’t have a crystal ball. I just wondered if people felt that prices would come down soon?
So many people on this site are buying and selling homes.
OH MY GOD I’M PUTTING THE HOUSE I BOUGHT IN DECEMBER ON THE MARKET NOW!!! SELL SELL SELL GET OUT NOW AAAAAA!!!!
you jackass.