August 3rd, 2007
Two big stories from Bloomberg. The first is about shares dropping on Countrywide and IndyMac. Investor demand is drying up as the sub-prime woes spread to the Alt-A market. Here is the link.
The second is about Wells Fargo and others not making loans to even those with good credit or those who don’t document their income. Here is that link.
Neither bodes well for housing. I’ve been saying for quite some time, that housing was going to be a bigger problem then Wall Street was letting on, and it is coming to fruition.
This has been sending stock prices down and bond prices up (yields down). People are once again pricing in a potential rate cut. Don’t we all wish we had a crystal ball? But we don’t.
My advice (this isn’t real advice, as I am not a Financial Advisor, just my two-cents worth type advice) is don’t put all of your eggs in one basket and for your term type investments, ladder them.
-- By +Chris Duncan