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randallg99
Bronze Contributor
Don't try to catch a falling knife in the public big markets. Real estate deals with motivated sellers, if you can find them, and make reasonable terms, are usually good but trading the broad market is difficult.
:iagree:
good point regarding real estate... probably much easier naming terms and prices today as a buyer than as recently as a few months ago.
Also, regarding CountryWide, (CFC) - it appears they were having difficulty selling their pools and buyers were not biting... this is the justification for the news they made yesterday and this is probably the main reason for some of the smaller mortgage companies blowing up.... they were just unable to unload their paper to fund new deals...
now, onto the markets - I am at 50% cash and waiting... would like to see the dust settle before buying and may move to more cash today... I really dont like seeing France having to interject and close funds because they lost their shirts in US mortgage markets. This could really be a sign that the debacle that could spill over into Asia...
to make a perfect storm, China would dump their US treasury holdings which is probably perfect timing considering their prices yesterday. unfortunately, this is not an unrealistic scenario and could be the final nail in the coffin before Bombs-away Ben and govt intervenes