Percentage wise, these drops are perfectly reasonable. I wish people would relax.

Given that mortgage rates are at historic lows, there is only one reason for a mrtgage crisis. That is historic fraud. Eventually CFC will be forced into bakruptcy. My advise is sell, sell, sell.

I agree with Warren, people need to relax.

Jay Freese,

Your comment is an over-simplification and indicates you have no understanding of mortgages, interest rates, or the stock market.

When you begin to understand that Allen Greenspan lowered the interest so low that the average American household could afford to actually purchase a home. Once the purchases were made, he raised the interest rate several times. Most of the mortgages that were purchased were adjustable and over the yrs increased the interest rate up to highs as much as 12 and 13%. This caused the mortgages to go from affordable to extremely unaffordable. People are now losing their homes and current homeowners that refinanced are being causght in the numbers crunch as well. They lowered the interest rate to make the economic numbers look good on paper. If you have been following the trend, once the interest went low, the prices of homes tripled. This is a real proble for our economy, not to mention that not only are they paying a mortgage they never expected to skyrocket, gas increases have cause every other product on the market to increase, while wags have stayed the same. Please be informed before you make comments about relaxing.

Today's news: Stocks are trying to recover after a second injection of $16 billion from the Federal Reserve to try to alleviate liquidity concerns.

Wouldn't it be nice if when you got your tail in a financial crack the Federal Reserve would move to immediately assist you???
Back to the video we saw.. One corporation assisting another Corporation.
And the investors and the people that took out the fradulent loans ... well. F - - - them. Relax.. says the one that has absolutely no idea what the hell is going on.
How funny! Do you all now where all this money is coming from? It is being printing by the Federal Reserve.
To the person that says "relax" are you going to get some of this money?

Ha Ha

You can blame the government, you can blame the republicans and the democrats....you can blame the whole damn world. But, what is really wrong with this country is that eighty percent of the inhabitants do not have a clue.

Now... as one of the clueless said RELAX..

please define what is or what makes a "hedge fund"

Is it possible to force lenders to revert back to the original mortgage agreement for a 1-3 year period? The low entry rate loans were a sham for most home buyers. They were lulled into a teaser rate and had NO IDEA what would occur down the road. Well, we are now "down the road", and all those slick mortgage lenders should have to do something to stablize this mess!!

The injection of liquidity into the world economy Thursday and Friday is unprecented, both in terms of the amount of money and the number of central banks acting in unison. Money is what makes the stock markets run. When this money finds its way into equities, and it will, the stock markets around the world will recover. I'm not saying this is a buying opportunity. But rather to watch and see what happens this coming week.

This situation is just another confirmation of the sad situation that the large majority of us are being manipulated by large powerful companies in the US financial world. Their greed to obtain 'other peoples money" was once confined to the USA, now its being sold to other innocents world wide. The Fed and others are just part of the program. Today, we are experiencing "rumor mongers" at international levels.
This is truly eye opening, lets see what schemes are brewing for next week. I have to stay calm and hope that some knight in shining armour will save the day.

U.S. must ban food, drugs from China




By Alan Tonelson
WASHINGTON -- China itself has just made the strongest possible argument for immediate, sweeping U.S. action to protect American consumers from its dangerous food and drug products.
A government spokesman made this surprisingly candid admission: "Our work with food and drug supervision is just beginning. The foundation of the work is still weak, and the trend is not promising."
The policy implications are unmistakable: First, any Chinese goods made for direct or indirect human consumption must be considered a priori hazardous. Second, whatever Beijing's intentions, China's regulatory woes will persist for decades. Thus Washington's continued dithering increasingly invites epidemics and deaths.
The only realistic alternative is mandatory, detailed country-of-origin labeling for all food and drug products sold in America, including their ingredients.To avoid discriminating against China, this system would be extended as quickly as possible to cover other trade partners with demonstrably poor regulatory systems.

I'm not "relaxing", but I'm keeping calm about this downturn. I don't think it's done yet, but I also expected a downturn about now. I've been expecting a downturn for about 6 months, to be honest. It's almost a relief now that it's here.

No, I didn't sell anything. I simply started adjusting my purchases to reflect the coming downturn a couple of months before the year began. I started buying more bond funds and putting more into cash (but not that much more) while cutting back just a little on stock purchases.

Somewhere I latched on to the idea that an investor's worst enemy is emotion, and fear is worst of all. So I make my plans, and I stick to them.