The Dow is now below 7000, below even 6900. AIG posted the biggest loss ever posted of nearly 62 billion dollars. HSBC is closing it’s consumer loan business in the US as it posted a 70% drop in profit and is laying off thousands. The feds pumped 30 billion more into AIG making their investment a total of 180 billion.
I got my home assessment last month. I am now officially underwater. If house prices continue falling, trouble might get worse. Inspite of having perfect credit and the ability to pay my mortgage bill, I cannot refinance into a lower interest rates because of being underwater. I’m hoping Obama does something to let us people who are not missing payments also refinance.
During the great depression the Dow fell almost 90% from it’s high. Times are different now and I didn’t think the dow could fall over 50%, but it has. So is this a bottom? Only time will tell. Personally I’m assuming that the market can fall even more and I’m not getting into anything now. Chances are that it will rise tomorrow as it generally does after bleak days. But beyond that, who can tell?
So even though I might miss out on some gains if today is the bottom, I’ll wait until the market steadily rises for a few weeks before getting into anything.
Another thing to note is that gold is back near all time highs. So if you are thinking of moving from stocks to gold, this is probably the worst time ever.