Stocks Lose Steam on Subprime Worries
Tuesday July 31, 2:35 pm ET
By Madlen Read, AP Business Writer
Earlier in the session, stocks had soared following strong earnings from General Motors Corp. and Sun Microsystems Inc. and amid somewhat mixed economic data.
But stocks pulled back after American Home Mortgage Investment Corp. said Tuesday afternoon it hasn't been able to tap into its credit lines and has hired advisers to consider its options, including the sale of its assets. Wall Street has been concerned about tightening credit after some loans made to borrowers with poor credit have gone bad, and that anxiety contributed to the market's big plunge last week._____________________________________________________________________
This further illustrates my point that our economy along with the stock market is nothing more then smoke and mirrors. Yesterday all the fear was out of the market, CNBC had all the regulars on saying happy days are here again because of corporate profits; indeed they are rising, but not due to American investing, but rather foreign investing! Which by the way does nothing to help are national or local economy. Remember, we are part of a global economy; therefore a strong stock market is a mute issue with a weak dollar. How weak? In 2002 the Euro was at .82, today 1.3688- in 5 years the dollar has devalued by approximately 38% !!!
For the first time , in my life time at least, Canadians are vacationing in large numbers here in the US because they are getting more bang for their buck!
This is just a taste of what is to come my friends! Tell me, where are these companies going to turn to? This is definitely going to effect every aspect of our economy and the only ones that will come out on the right side of the stick is savvy investors. Now more than ever is the time for us as investors to learn everything we can on foreclosures and the short sale process.
Stay tuned for helpful strategies and tips.