OT: US stock market set to crash Tuesday morning

[Mr. Zipper]

I've got my mortgage set with a 30-year locked interest rate, both my wife and I have steady income, marginal debt (aside from the house), and slowly (but steadily) putting a little bit away each month (just some CDs and a mutual fund, and an IRA- and not counting her pension plan). The only effect I see this having on us is that it will cut away at our disposable income with increased cost for other items (i.e. gas, utilities, heating, groceries, etc).

 

Is there anything else I am missing here that I should be worried about? :shrug:

 

Nope. We are in the same boat.

 

Might be a little belt tightening and a few less dinners out to offset increasing fuel costs and inflation, but your losses are only on paper.

 

Just pray you don't have a job loss , otherwise you'll be fine.

[dekeuk]

 

Only an interest rate cut before the market opens will save it from gapping down

 

Pardon me, but that's quite a statement. In fact, it's not true. There are thousands of things that could stop the market from opening down 500 points: foreign markets rebound, dollar unexpectedly strengthens, oil drops, gold drops, any of a hundred economic indicators could be rumored to be strong in their next report, etc. To say that only a rate cut can keep it from happening is quite frankly not entirely taking into account all of the variables.

 

 

Well, none of those things you said might happen happened. But the Fed did cut 3/4 points like I said might happen (instead of the 1/2 I thought they might cut).

 

We'll see if it's enough to save the market......

[ComicSupply]

So, with this cut, what is an attainable fixed rate on a house?

[FlyingDonut]

I've got a 15 year fixed at four and a half. When I can get 15 years at four, somebody call me.

[ComicSupply]

Right but how long ago did you do that?

 

I am saying right now if you went for a loan, what kind of fixed rate can you get.

[FlyingDonut]

Right but how long ago did you do that?

 

I am saying right now if you went for a loan, what kind of fixed rate can you get.

 

Summer of 2005. I think you can get a 30 year loan in the low fives. Wait a week and it will be lower.

[Mr. Zipper]

Right but how long ago did you do that?

 

I am saying right now if you went for a loan, what kind of fixed rate can you get.

 

Summer of 2005. I think you can get a 30 year loan in the low fives. Wait a week and it will be lower.

 

I presume rates vary by state?

 

Whenever I see "average mortgage rates" in the news, they are always about 3/4 of a point lower than the best rates I see in local ads, in my credit union, etc. (In NYS.)

[ashrael]

Seems like 2 weeks from now is a great time to refinance my mortgage (especially with a my 7-year ARM ending in 3 years). Does that sound right?

[G.A.tor]

well, the market has already cut the loss in half...so, will be interesting to watch today... I am actually hoping for a little more decline, need to put in my SEP

[Mr. Zipper]

Seems like 2 weeks from now is a great time to refinance my mortgage (especially with a my 7-year ARM ending in 3 years). Does that sound right?

 

 

Anything to get out of an ARM seems right to me.

[Mac Man]

... I got my loan Summer 2006 and mine is right around 6 even. I wonder if I am able to refinance and lock in at a lower rate? I did it with my car, but that loan is about 10x smaller... anyone know about this?

 

My only concern is that if I do begin my Ph.D. program next fall, it will translate to a little over $10k drop in salary on my part which guarantee some serious belt-tightening (unless I can find some additional part-time research work). But I'm glad we put what savings were left after the house purchase into a mutual funds v. reg. stocks and whatnot.

 

And to keep this remotely comic-related, I do believe it will cause me to tighten the belt on disposable income (i.e. comics), but I don't really don't see the need to sell off anything from my collection. Comic money is disposable income that, once spent, is gone.

[Dale Roberts]

Countries at war ALWAYS go into debt. Just a fact. Is that the only problem, obviously not. The biggest problem that I see with the economy is that banks give out credit cards and mortgages like candy, to anyone and everyone. Also the rise in gas prices is effecting costs in every aspect of life and creating inflation.

 

On the positive side, we have 95% employment, which is historically very good. I would suspect the majority of the 5% that don't have jobs don't want jobs.

 

Your post is way over the top and sensationalistic. No one in this country is selling their collections to pay for shoes for their kids. No one is making less money today than they did yesterday(unless you are a day trader), and they aren't going to make less tomorrow.

 

If most people could do and stick to a simple budget, they would have no problems in their lives. If you don't spend money that you don't have (i.e. credit cards), then you won't get in trouble.

[finecomics]

bankrate.com

 

good place to start

[bronze_rules]

when you start hearing talk of a market crash on a comic board...

well, then I figured that had to be the bottom.

[Mr. Zipper]

On the positive side, we have 95% employment, which is historically very good. I would suspect the majority of the 5% that don't have jobs don't want jobs.

 

Not true. The face of unemployment is changing. Sure, if you lose a $60,000 a year job and can shift your career focus to Burger King, things are just great.

 

Highly skilled and out of work

Long-term joblessness spreads in the middle class

http://www.msnbc.msn.com/id/22764445/

 

If you have a good job and get laid off, get ready for a long and bumpy ride.

[Dick Pontoon]

On the positive side, we have 95% employment, which is historically very good. I would suspect the majority of the 5% that don't have jobs don't want jobs.

 

If most people could do and stick to a simple budget, they would have no problems in their lives. If you don't spend money that you don't have (i.e. credit cards), then you won't get in trouble.

 

Wow. Where'd you get your PhD in socio-economics? Clown College?

[Transplant]

 

Only an interest rate cut before the market opens will save it from gapping down

 

Pardon me, but that's quite a statement. In fact, it's not true. There are thousands of things that could stop the market from opening down 500 points: foreign markets rebound, dollar unexpectedly strengthens, oil drops, gold drops, any of a hundred economic indicators could be rumored to be strong in their next report, etc. To say that only a rate cut can keep it from happening is quite frankly not entirely taking into account all of the variables.

 

 

Well, none of those things you said might happen happened. But the Fed did cut 3/4 points like I said might happen (instead of the 1/2 I thought they might cut).

 

We'll see if it's enough to save the market......

Before you start polishing your crystal ball, you didn't really predict a rate cut. You said the above quote.

 

One thing I want to point out to people is that companies will pounce on this type of market to unload every bit of negative news they can. It's better to announce bad earnings or take a write off now than when your stock is up.

 

Personally, I think .75% is a ridiculous knee-jerk reaction by the Fed.

[Mr. Zipper]

On the positive side, we have 95% employment, which is historically very good. I would suspect the majority of the 5% that don't have jobs don't want jobs.

 

If most people could do and stick to a simple budget, they would have no problems in their lives. If you don't spend money that you don't have (i.e. credit cards), then you won't get in trouble.

 

Wow. Where'd you get your PhD in socio-economics? Clown College?

 

He's half right.

[Scott Summers]

... I got my loan Summer 2006 and mine is right around 6 even. I wonder if I am able to refinance and lock in at a lower rate? I did it with my car, but that's about 10x smaller... anyone know about this?

 

Right now it will not be worth it, even with this rate cut. Yields really have more to do with dropping mortgage rates more so than the fed funds rate. If you are locked in right now at 6.0% that is great.

 

Mortgage rates will continue to fall, but remember if you refinance you are going to have to pay again a closing cost. Now how much depends on how cheap of a rate you get. So for example, right now, say you go an offer for 5.75% with $3000 out of pocket to close, it might not make sense for you. Unless of course you need to pull capital out and have built up some equity, that is a different story.

[Dick Pontoon]

On the positive side, we have 95% employment, which is historically very good. I would suspect the majority of the 5% that don't have jobs don't want jobs.

 

If most people could do and stick to a simple budget, they would have no problems in their lives. If you don't spend money that you don't have (i.e. credit cards), then you won't get in trouble.

 

Wow. Where'd you get your PhD in socio-economics? Clown College?

 

He's half right.

 

Not even! If you guys think that the only people who find themselves in a bad financial situation are "those who don't want jobs" or people who rack up heavy debt by making too many trips to BestBuy or Macy's, you're living in an ivory tower isolated from the real world.