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Weekend Reading - The Subprime Meltdown Edition

Written by FrugalTrader on Aug 17, 2007 filed under Interesting Links

With the big stock market drops making all the news these days, I thought it would be useful in posting some information as to why.

As I posted yesterday, Globe Investor explains why the subprime meltdown is affecting the stock markets in an article called "The Credit Crunch".
CBC reports that the sub prime meltdown is affecting the loonie.
Could the expected rate increases be stalled due to the current financial market turmoil? I hope so!

In other news:

Another great carnival of personal finance posted @ My Open Wallet. I submitted my article on the American Express Centurion (Black) Card.

What's your take on the sell off? Are you selling off with the crowds or hanging in there? Me? I started dabbling in some financials yesterday afternoon. :)

7 Comments, Comment or Ping

1. Lawrence

FT, good call on this topic! I was just about to ask your thoughts on the markets’ current situations. To me it feels like the early 2000s when I lost a bunch . Should we expect a rebound some time in the Fall? The patterns seem similar. I think your idea of investing in the banks are a good idea. I’m not planning to sell anything right now, but I’m going to wait until Oct-Nov to see how the stocks are to reinvest. Thanks for reading my mind :) P.S. How’s your house coming along?

Aug 17th, 2007 @ 12:22 pm
2. Mike

Am waiting to see if it will go down some more. Excellent time to buy!

Aug 17th, 2007 @ 6:46 pm
3. Warren

I’d be a little hesitant to try and “catch a falling knife” in what could be a protracted drop in the market. Its much easier to jump in as things start to rise.

I have a feeling this will be unwinding for a while, we haven’t heard the end of the credit issue.

Aug 17th, 2007 @ 9:08 pm
4. Nabloid

Times like these just make certain stocks attractive and should be used to our advantage. It might seem like short term pain, but I think if you spot some opportunities, you’ll forget it while you enjoy the long term gain.

Aug 18th, 2007 @ 10:41 pm
5. Rod Payne

FWIW, I just bought some RY-T (not an endorsement or intended as investing advice).

My only other comment on the situation is the chuckles I get when I ask people how the points on the various indexes are calculated. someone told me the TSX dropped 500 points with a very perturbed look on their face. So, I asked them to explain what that means…..no idea. Sigh.

Aug 19th, 2007 @ 6:30 pm
6. FrugalTrader

Hey Rod, I also bought some RY-T before the gap up. Hopefully it only goes up from here. :)

Aug 19th, 2007 @ 6:37 pm