I stand by my call for SPX to see 3 digits. I also think derivatives transactions will plummet in coming years, government will need to support the repo market, and the days of large bonuses are DEAD. I also think anybody who fled another industry to enroll in a full-time MBA program or something alike in order to get into the financial industry in hopes of a better salary has probably made the biggest mistake of their life. Today’s historic day that saw Lehman go down and confidence in the financial system reach all-time lows resulted and will continue to result in massive liquidity being drained from the system. The DEFLATION monster is going to take many people under. I am sorry to be the bearer of bad news, but if anyone is thinking about buying a house (DON’T), if you’re in debt (PAY IT OFF IF U CAN). If you work for any of the broker dealers, where if there was a merger and your job would have a high probability of being cut, make necessary preparations right now such as being in contact with headhunters. I work in the industry, I’m right in the middle of market action, and I’m telling you that what is going on is catastrophic. Anybody that thinks that the Fed can monetize faster than credit contracting better start paying attention to the Treasury market, specifically the 30yr bond whose yield reached a 31yr low today.
I just went under contract on a place w/ $3k in earnest money. Due diligence period is over. Looks like I’m stuck. But, on the plus side: 5.75% mortgage w/ payments of $635/month. 45% down payment. Place is in Atlanta. Do you feel like it will be that bad if I hang on to the place a minimum of 5 years?
“WALL STREET WILL NEVER BE THE SAME” I hope not.
edmund_lord Wrote: ------------------------------------------------------- > I just went under contract on a place w/ $3k in > earnest money. Due diligence period is over. > Looks like I’m stuck. > > But, on the plus side: 5.75% mortgage w/ payments > of $635/month. 45% down payment. Place is in > Atlanta. Do you feel like it will be that bad if > I hang on to the place a minimum of 5 years? Atlanta’s real estate market will be fine. Living in an area with conservative banking practices will help the market recover much sooner. I’m in Atlanta also so I guess I am partial but I don’t own any real estate. We’re all speculating here but I don’t see the SPX heading sub 1,000. 1150 bottom to trade sideways through most of 2009.