#1 – The city of Detroit officially filed for Chapter 9 Bankruptcy. It’s the largest Bankruptcy in the history of this country and the current issues facing the city of Detroit are nothing short of a scene from an apocalyptic television show about the end of the world. It’s truly scary on many levels. Read the full article here.
#2 – Microsoft AND Google both disappointed yesterday with their quarterly earnings reports. These are two companies that have been flying high lately, especially Google. The misses were both pretty substantial and could easily have garnered a 200 point loss in the Dow Jones Industrial Average today, but the Dow only lost 4 points amid this whole mess. Read the full article here.
The good news is – manipulation of the financial markets by the Federal Reserve is still working nicely.
The bad news is – when the manipulation of the financial markets by the Federal Reserve stops working, we are going to have a major problem. The longer they do it, the bigger that problem will be.
When you have REAL sellers that don’t pull the trigger because they are afraid to “buck the trend”, it won’t take much of a reversal for them to hit the sell button in the future. The increasingly low volume of transactions in the Stock Market is starting to make more and more sense. There are NO sellers. Everyone is holding because they keep making money. New Buyers are fresh blood mostly, which would lead me to believe we have reached at least a temporary peak in the indices. Doug Kass gives 7 reasons why the market is peaking here.
Today’s Mr Credit Radio Show highlights:
– The real estate slow down is beginning. We are seeing homes for sale dropping their list price as the lack of frenzy is finally here in some price points. I think I may have absolutely NAILED this one.
– What is a subluxation? How do you measure it? How do you treat it? Most people don’t even know if they have subluxations because there are few symptoms in many cases. There is a way to find out for Free how you are personally affected by this.
– The rise in interest rates has started to affect Reverse Mortgage rates and therefore the amount of money you can get from a Reverse Mortgage. However, there is one strategy that could be the solution to having your cake and eating it too.