Massive tightening of mortgage credit
All of the big players have severely tightened subprime, Alt-A and even some prime mortgages over the last two weeks. As bad as the housing market looked in late July, it just got a lot worse. The subprime market is all but gone now. This will easily be the worst housing recession ever and like the tech bubble, it will take years to work of the excesses.
posted by Never-Limp at 6:16 AM
3 Comments:
given this (and the apparent range morgage backed investments cover)
is the 1600 target for s&p not likely delayed a year (or more?)
If the Fed does its job and keeps this a mid cycle slow down instead of a recession, stocks can still have a strong 4th quarter rally and we could get there.
the fed better have some pretty magical shit at the ready!
my double down order on FMD is in at 29 i don't know if i should root for it or not
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