Today’s Housing Bubble Post – Stocks Plunge Worldwide

The problems of the housing bubble are catching up to us. The real estate crash has started, bringing big losses to the big financial firms — over $100 BILLION in write-downs so far!
And in the past few weeks the stock market has been catching on that things are not so great anymore. But today – with markets closed in the U.S. in honor of Martin Luther King Day – stocks have been plunging around the world. Markets in Asia down as much as 7%, even more. Europe as well. Canada down.
Dow futures are down dramatically – 540 points, more than 4% – which could mean a very bad day tomorrow – or not.
Stocks Plunge Worldwide on Fears of a U.S. Recession – New York Times,

“There is indeed some panic,” said Thomas Mayer, the chief European economist at Deutsche Bank in London. “What we’re seeing, in Europe and Asia, is that the markets are pricing in a recession.”
The sell-off was evenly distributed from West to East, with indexes plunging in London, Paris, Frankfurt, Tokyo, Hong Kong, Seoul and Bombay. The Frankfurt Stock Exchange’s Dax index plummeted 7.2 percent, its steepest one-day decline since Sept. 11, 2001. The 7.4 percent drop in Bombay’s Sensex index was the second-worst single-day tumble in its history.

Remember what I said about money market funds. Make sure that your money is in FEDERALLY INSURED ACCOUNTS.

Today’s Housing Bubble Post – Cashing In Before Crash

Also titled “I told you so!”
In the LA Times today, How we cashed in before the housing crash,

Our friends said we were crazy. Relatives asked whether we were in financial trouble. But in April 2005, my wife and I bailed out of the American dream. We sold our two-bedroom Pasadena condominium and became renters again.
We got nearly three times what we had paid for the place nine years earlier. It seemed to us like a staggering profit — and a sign that the market had been pumped up beyond reason.
. . .But at the time, a lot of people thought we had sold too early. To stay on course, I adopted a personal anthem. It was a Public Enemy song that hit big in 1988 during the previous real estate run-up: “Don’t Believe the Hype.”

Sold too early. And now they’re saying “We’re at the bottom.” Right.