Dow Jones plunges again - 240 points today...

[garybeck]

http://www.huffingtonpost.com/huff-wires/20070313/wall-street

Dow, Nasdaq Fall on Subprime Lender Woes
MADLEN READ | AP | March 13, 2007 03:21 PM EST

NEW YORK — Stocks plunged Tuesday, driving the Dow Jones industrials down more than 240 points in their second-biggest drop of the year as troubles piled up for subprime lenders.

Investors, bracing for a wilting economy, fled the already deflated subprime mortgage sector while problems increased for lenders such as New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s residential unit. Bolstering the belief that the problems are widespread, the Mortgage Bankers Association reported that new foreclosures surged to an all-time high in the last quarter of 2006.

The subprime lending worries, coupled with anxiety over the Commerce Department's report Tuesday that U.S. retailers eked out a meager 0.1 percent rise in sales last month, knocked down all three major stock indexes about 2 percent.

"The market's still jittery, and they're starting to get full-blown concerns over a bleed in the larger subprime mortgage market," said Matt Kelmon, portfolio manager of the Kelmoore Strategy Funds.

[Lucky Luciano]

1. I say bring 'em on!

:nuke:

[On the Road]

2. Finally I'm on the Right Side of a Move

I went all cash two weeks ago and am $10k double-short (USPIX). I don't think this is the start of a huge crash, but there should be more downside.

There is a possibility of another bounce off the 200-day moving average, which for the Dow looks to be about 1195. On the other hand, if the trend is serious, it could just plummet right through. We will see.

[mnhtnbb]

7. Beware of those gains! I cashed out big time last May and Sept

and am now doing taxes. Ouch. My capital loss carryover got used up last year so I'm lookin' at a big bite from Uncle Sam.

[On the Road]

8. Mine's in an IRA

which is why I used USPIX rather than options. I wish taxes on profits were my major concern. :)

[lyonn]

3. The housing market has kept our economy afloat

in this bush/reagan economy. The war machine mostly helps the big boys. The housing market touches all of us. When it goes so goes some major jobs that pay many mtg. payment along with groceries, Walmart, etc. Heck, the Mexicans will have to go back to Mexico if they don't have the construction jobs they have that they took from the citizens.

[Virginia Dare]

5. When the Latin Americans start heading home without jobs...

what the hell happens then?

I read recently where there are entire villages in Central America that are emptied of everyone but the very young and the very old. They're all in the U.S. working.

What happens when those jobs go away?

[nadinbrzezinski]

4. Watching with interest

[mnhtnbb]

6. Market opened up slightly Wed , but it's heading down.

[paparush]

9. GREAT! I've been w/ my new company for a year. I can begin 401K

contributions (with 6% matching) on April 1, 2007. The markets are roller coastering like crazy. Its like a sick April Fools joke.

Guess I'll stick to bond funds.

Any investment-smart DUers out there who could give me some advice?

[B Calm]

10. Invest only in world wide funds