| Experts: Ride out volatile markets
And the gyrations the market experienced this week didn't exactly calm investors' nerves. Wednesday, the Dow Jones industrial average plunged more than 300 points early in the day because of fears of a pending recession. Then it roared back and gained nearly 300 points. Stocks advanced again Thursday, extending the comeback. Friday, the three major U.S. indexes fell more than 1 percent. Is the volatility reason to worry? Maybe. But local stock brokers and economists say it's no time for investors to panic. "I don't know if I'd use the word 'worried,' " said Leigh Baldwin, president of Leigh Baldwin & Co., a brokerage in Cazenovia. As long as someone isn't retiring very soon and doesn't need the money right away, he or she should be able to ride out the storm, he said.
Five Steps
The problems in the mortgage industry occurred on the fringes. Borrowers were approved with no documentation, stated income, and low credit scores. In many cases, loans were written at 100% loan to value, and borrowers sometimes needed well over 50% of their income to cover their monthly payments. Is it any wonder that people got into trouble? Unfortunately, many of these borrowers probably shouldn't have received a loan in the first place.Banking is a highly regulated industry; some parts of the mortgage business are not. At a bank, you have to do things by the book - and that protects both the lender and the borrower. The numbers bear this out. The delinquency rate on sub-prime loans is 20%; for traditional loans, the national average is 5%. However, last summer, the public did not make this distinction between fringe and mainstream lenders.
Stocks Claw Toward Flat Line
Stocks in the U.S. finished little changed Thursday, as traders balanced weak quarterly reports out of the financial sector and another record for crude oil against strong technology earnings. After falling by as many as 72 points earlier, the Dow Jones Industrial Average clawed its way back and finished down 3.58 points, or 0.03%, to 13,888.96. The S&P 500 was off 1.16 points, or 0.08%, to 1540.08. The Nasdaq Composite eked out a gain of 6.64 points, or 0.24%, to 2799.31. "We're still seeing leadership from the technology sector, mostly related to earnings, but outside of that there's nothing leading us higher," said Paul Nolte, director of investments with Hinsdale Associates. "The market has come up so fast from the August bottom, and valuations are set now that a slowdown won't affect earnings going forward." Breadth was negative.
United States
After all the destruction you have caused and which your country continues to cause, you have wished to end your rule by playing the role of peacemaker....But you are lying as you have lied before to the people of the Middle East and to your own people." .
Are the suburbs a health hazard?
I love our decision to live in a semi-detached small home in an urban area. I have a 7.5 minute walk to the subway or a 2 minute walk to the streetcar. There are a plentitude of small stores, that I can also walk to. Yes, we have two cars, but they are aging and I'm planning on getting rid of my car. Living in either an urban or suburban environment is indeed a lifestyle choice. However, I strongly believe that health and happiness can be quite different. I grew up having to drive everywhere, and now I get to walk/bike/streetcar to my job downtown. I wish municipalities (through their Council) would be more aware of developing sustainable communities that don't necessarily rely hevy on a car. However, it is a lifestyle choice of many (i.e. marketing influences) that make our decisions whether we want that garage or not.
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