Financial markets really hate uncertainty, don't they?

[randomness]

"That stampede you're hearing? It's folks running for the exits."

The biggest problem right now is that no one has any clue who all are holding the bag, or even how big the damn bag is. So while it doesn't hurt that the Fed and the ECB are opening the credit windows and throwing money at the banks, that doesn't make any of the banks less fearful and suspicious of each other.

And fear and suspicion? Bad for markets, just like they're bad for any other relationships.

Comments

[orichalcum.livejournal.com]

All too true, but you need to weigh the likely decrease in cost against the likely increase in mortgage interest rates, especially if you expect to be taking on a large mortgage. Timing this market right, like timing any major market, will be very tricky.

Speaking only for myself, the instability would make me not want to buy in the shortrun if my time frame for ownership was short-- say, 3-5 years seemed likely. I would want to buy in the shortrun if I expected to be in place for 7+ years. But other conclusions are certainly reasonable.

--Adam

[outlawradio.livejournal.com]

Right, but it sort of doesn't matter when to buy if credit is not available, which is the big worry now; will money be lent? If it may be available in the future, but at a higher rate, when it is not available at all now, that is the time to buy; one can always refi down the road.