In a see sawing day on Wall street, US stocks finished lower for for the 5th straight day as the meltdown continues, with US Banks leading the route.
Mr Mortgage says that are are hopes that Australia’s market will be higher on Monday on Futures trades, but that does not take into consideration people ready to jump out of the market on any rise. The real worry is tighter credit and liquidity of funds in banks, as this will affect both businesses needing finance for cash-flow, and consumers wanting to buy their products using finance.
Lower the cash rate may increase demand for finance, but if the consumer can’t get mortgage home loan finance of car finance to buy a new car, where will the economy finish? That’s the question that no-one can answer.
The S&P 500 fell below the 900 mark, as fears that tighter credit may send the global economy into recession slashed the appetite for risk.
The Dow Jones industrial average slid 401.27 points, or 4.68 per cent, to 8,177.92.
The Standard & Poor’s 500 Index was down 6.43 per cent, or 58.48 points, at 851.44.
The Nasdaq Composite Index was down 69.09 points, or 4.20 per cent, at 1,576.03.
Trading on South America’s largest stock market in Sao Paulo has been suspended after the market slid more than 10 per cent.
Hopefully a better brighter new week is waiting to unfold as Governments around the World word to provide liquidity for their banks and credit loans availability for consumers and businesses alike.
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About: Rick: Rick Adlam has been involved in mortgage finance since 1996 with Equity Home Loans as a Founding Partner. Rick created Mr Mortgage™ in 1999, one of Australia's first online mortgage brokers. As a mortgage introducer Rick specializes in helping his clients get approved for low interest mortgage loans with no ongoing fees and charges, and low doc home loans for the self employed.
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About the Author
Rick Adlam Has Written 139 Articles For Us!
Rick Adlam has been involved in mortgage finance since 1996 with Equity Home Loans as a Founding Partner. Rick created Mr Mortgage™ in 1999, one of Australia's first online mortgage brokers. As a mortgage introducer Rick specializes in helping his clients get approved for low interest mortgage loans with no ongoing fees and charges, and low doc home loans for the self employed.
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