Since yesterday, stock markets world wide have crashed to 5 to 15%. Feds announced 0.75% rate cut in US, Canada reduced 0.25% for now and will be down further half a percent in a week or two. The housing and sub-prime mortgage crises in US is hovering above the middle class and about to hit hard on banking and insurance sectors as well. House prices are down to 10 to 35% in some areas, litterally. A slash in head counts is already seen since the begining of the month and it is bound to increase, more jobless=more bankcruptsies. Gas prices are at the highest in last 35 years.
Q1.
Is this recession worse and quicker than expected? Is world economy too depended on US consumers? If Japan and Korea don’t stimulate with 30 year bond every year, are we looking at the collapse of globalization and modern economic framework that emerged post cold-war?
Q2.
How this is going to effect families in North America and Europe?
I am an optimistic guy .. so I like to believe that its more of a hype ...
Its Media spreading news , making people panic , thus investors taking money out , which is crashing stock market ... which is a news again ... and the cycle repeats itself ...
I would say .. stop Media from creating panic ... situation might be bad .. but cannot be as worst ....
and this always happens when its time for Democrats to come ... This is exactly what happened in 1992 ... and then we saw Mr. Clinton ..
Its somewhat pre-planned ... that is my conspiracy theory
TLK, I understand what you're saying. But look at the sub-prime mortgage crises. Its not hype or preplanned. This was a slow poison and Feds knew it, still didn't come up with a solution. The fear is there is no solution, the economy is not robust enough to support the growth in housing sector we witnessed in last 6 years. Another war or invitation to middle east to reinvest in US will not work this time around.
there are businesses for which the downturn is going to be good.
and there are businesses that are immune for the most part.
but what I meant was that these large institutional investors can and do manipulate markets.
I would too, if ppl start dumping goodstocks because teh sky is falling down, I may dumo them as well adding to the hysteria, witha goal to buy them low. or take short and long positions as needed.
the stock market gets impacted by the greed of unskilled folks who are just used to see teh gains and as soon as they see an issue start dumping stocks. so they see a sell off and oh my god, let me not get impacted, let me sell my stocks as well..and its starts a hysteria.
**If above is hysteria then chup ker ky apni jaga bythy rahu Umeedy Bahar main geogrphia ho ga:frusty: or aj qeemat 17 dollar hy tu kal khudankhwasta 17 cents reh gai tu yeh keh do ky “meri qismat ab baich ker kiya faida pery rehny do” Stocks ka ghuraphia bhi wohi apn abhi wohi allah Allah khyri salla. ** :PS:I need a shoulder to cryyyyyyyyyyyyyyyyyyyyyyyyyy:teary2: Sadi bari aai ty ghugu ro piya:frusty:
So I have a question on my 401(k) .. I put in some money a few years ago in a in a fund that had majority of their assets in real estate. For the past few quarters I have seen losses on it. (duhh)
When I distributed the 401k money (actually contributions) into different funds I was in it for the long haul and so I evenly divided among the different kind of funds and so far I haven't seen a net loss. But should I pull the plug on that fund and move my money somewhere else?
Anyone dealing with real estate comes out on top if he has the patience to wait. Is this my Desi influenced make belief or does it have some truth to it?
^^ Qismat zoron per hoi tu matti main bhi hath dalo gy tu son aban jaai gi otherwise Allah maffi jahan jaao gy khud tu dobo gy sanam company ko bhi ly dobo gy:Hath jory Allah sy reham ki bheek mangta smiley:
So I have a question on my 401(k) .. I put in some money a few years ago in a in a fund that had majority of their assets in real estate. For the past few quarters I have seen losses on it. (duhh)
When I distributed the 401k money (actually contributions) into different funds I was in it for the long haul and so I evenly divided among the different kind of funds and so far I haven't seen a net loss. But should I pull the plug on that fund and move my money somewhere else?
Anyone dealing with real estate comes out on top if he has the patience to wait. Is this my Desi influenced make belief or does it have some truth to it?
real estate will not be down forever.
as far as other funds go, u have an option to put them all into some bond fund or even shortterm money market,unless you think your portfolio managers are equipped to deal with the ups and downs.
How much do you trust your fund managers? It is typically better to hang in there for the long haul, and now may even be a good opportunity to pick up some good investments at bargain prices. Do you research, and try not to react to what you see on TV.
You make money by buying low and selling when it's higher...you could on one end choose to risk it and put more money in now and hope that in 10 years or so it goes up....or invest in something else that is "less" risky.
Well, it all started with the housing market slump then the sub prime rates which eventually brought the banking sector down, low numbers in US manufacturing jobs, low numbers in spending......this is 100% recession, what ever ppl say.............................the best part is that the banking write offs will continue till end of this year.....so they are not done yet ?????
(
Stocks ka ghuraphia bhi wohi apn abhi wohi allah Allah khyri salla. **