friday sell off, page-27

whi55l

This was a post I am on another thread this morning:
"Spent September in USA, including 2 weeks in Florida.

Made a post on HC on my return commenting that it appeared the underlying property fiasco was much worse than widely acknowledged.

For example, property developers were offering discounts of 40% to move inventory.
Borrowers that went into default were hit with huge cash and interest rate penalties. Cases where an original mortgage of $250.00 taken out a couple of years ago had ballooned to an outstanding balance of $300.000+. The penalty interest rates means the borrower(s) have virtually no chance of retrieving the situation, and foreclosure in a matter of time. The effect is to prolong the inevitable, and the chooks are still to come home to roost.

Expect increasingly bad news as time goes by."


In essence, the Fed is playing catch-up and I doubt any actions they take will avert the inevitable.
I feel we are going to see more big dips as and when more bad news come out, and for the market to gradaully claw back each time. In essence, going nowhere in the immediate term.
On a positive note, 9 out of the past 10 October qtrs have been up for the DOW.