The 1973–74 stock market crash caused a bear market between January 1973 and December 1974. Affecting all the major stock markets in the world, particularly the United Kingdom,[1] it was one of the worst stock market downturns in modern history.[2] The crash came after the collapse of the Bretton Woods system over the previous two years, with the associated 'Nixon Shock' and United States dollar devaluation under the Smithsonian Agreement. It was compounded by the outbreak of the 1973 oil crisis in October of that year. It was a major event of the 1970s recession.
It's true that higher interest rates preceded the housing collapse in 2006. But that's because of the many borrowers who had interest-only loans and adjustable-rate mortgages. Unlike a conventional loan, the interest rates rise along with the fed funds rate. Many also had introductory teaser rates that reset after three years. When the Federal Reserve raised rates at the same time they reset, borrowers found they could no longer afford the payments. Home prices fell at the same time, so these mortgage-holders couldn't make the payments or sell the house.
In 1907 and in 1908, the NYSE fell by nearly 50% due to a variety of factors, led by the manipulation of copper stocks by the Knickerbocker company.[21] Shares of United Copper rose gradually up to October, and thereafter crashed, leading to panic.[22][23] A number of investment trusts and banks that had invested their money in the stock market fell and started to close down. Further bank runs were prevented due to the intervention of J.P.Morgan.[24] The panic continued to 1908 finally and led to the formation of the Federal reserve in 1913.[25]
To be able to make good decisions amid a stock market crash, investors will need to be able to remain calm. As Buffett has said, "Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."
Everyone seems to have an explanation for why stock prices rise and fall. People are happy about the economy. People are worried about the economy. People want interest rates to rise. People want interest rates to fall. Europe looks good. Europe looks bad. Canada's raising tariffs. Canada reported extraordinary growth. Company A met its earnings goals. Company B didn't. Inflation numbers looked bad. Inflation numbers looked good. Gold is hot. Silver prices fell. Oil supplies are running low—or high. Unemployment numbers changed too much or too little. Euros went up against the dollar. Who knows?
1st, sorry you lost your home. That said, had you read your loan documents you’d have seen the language advising you that loans are bought and sold on the secondary market all the time and the originator did not NEED your permission to do so. The sale of your loan to another bank, investor, Fannie, etc., had no effect on your payment, interest rate, term, etc. So the sale of your loan, regardless of how many times it was repackaged and sold, did not cause you to lose your house. If along the way the new holder of your “note” did not have an auto pay option, that was up to you follow up on and find out exactly HOW/WHERE they wanted you to make your payment. Again, sorry you lost your home, but the sale of mortgage backed securities (your loan) has no effect on the Payor (you) as terms cannot be altered (now THATS something they would need your approval on). The only way an eventual noteholder could foreclose on you is if you failed to make your payments as required…Did you stop making payments for some reason? A lot of good people got hurt in the crisis but there seems to be more to this than a repeated sale of the original note…I’ve been in my present home 26 years, have had several mortgages sold and sold again with no issues…most important thing is to confirm with your present lender that they had, in fact sold your note and the party telling you they now own your note are, in fact, who they say they are. Best of luck.
When markets are very volatile, the overall trend tends to be down.  So what investors should be hoping for are extremely boring days on Wall Street when not much happens.  That has been the usual state of affairs for much of the past decade, but now volatility has returned with a vengeance.  The following is how CNBC summarized the carnage that we witnessed on Friday…

As a case in point, I present to you subprime auto loans, or loans given to consumers with less-than-prime credit scores (usually 550 to 619 on the FICO score scale). Having a lower credit score typically gives these folks fewer lending options, which allows lenders that are willing to work with subprime consumers to charge a notably higher interest rate, relative to prime-rated consumers. The problem is these consumers usually have subpar credit scores for a reason, and delinquency rates on these subprime and deep subprime loans are shooting higher.

so that being said will this cause CA to go down the dumps along with housing prices?? I have already witness many middle to higher class citizens leave in large amounts in the last 3 years. and in the last 8 years a huge increase in homeless rate.. I am also concerned with the decision of the 9th circuit court that they have a constitutional right to sleep on sidewalks and parks which will further bring the state down.
These Tranche’s were nothing more than whipped cream on chit. Standard & Poors along with Moody knew all too well these loans weren’t as secure as advertised. At the risk of shareholder devaluation they were both falsely applying ratings to all of them. That’s called greed. CDO’S – synthetic CDO’S all in bad. I read it few times and know there are many reputable banks out there. The facts are however, they created and implemented what they could get away with. When the gun fired there was plenty of blame to go around. Now regulation has taken solid control of this and hopefully we will never experience this kind of meltdown again.

With a Real Wealth Strategist subscription Matt will be your guide to making the kinds of profits many investors only dream about. You’ll get access to his education and experience: Over 20 years in the natural resource industry, expertise in mining, industry and agriculture, and the chance to travel with him as he visits mines, oil projects and company headquarters, in search of the perfect investment idea. Real Wealth Strategist’s portfolio focuses on all natural resources. Essentially, if there’s a way to maximize profits, he’s going to find it and recommend it.
Robbins has also sold a crazy number of books. And while he may not be best known for his investing chops, he draws on the likes of Ray Dalio, Jack Bogle and others for the inspiration behind his #1 best-seller “Unshakeable: Your Financial Freedom Playbook,” which MarketWatch earlier this year counted among the eight best books about money published in 2017.
The turbulence of the election, rising interest rates against overheated housing markets does give some plausibility to a US housing crash in 2018 or 2019. Proponents of an upcoming crash point to too many Americans living lavish lifestyles, still buying expensive foreign luxury cars on a $40,000 salary, while sitting on over-leveraged monster mortgages that could be subject to quickly rising mortgage rates.
The Dow Jones is flying, but the risks of a crash are many and ready to materialize. Donald Trump was elected almost a year ago, at the time of writing. The markets were supposed to have crashed. They did for a few hours. Despite the many protests, marches, and witch hunts that the 2016 presidential election has caused, the Dow has gained about 30% since November 8, 2016.

Thanks for voicing your opinion too Violet. This isn’t Nazi Germany and it’s important that we can all speak freely without feeling threatened. I think my portrayal of Obama and Clinton was generous. I’ve witnessed the downfall of the US in the last 30 years and it’s awful to see. I hope you’ll get a chance to read my other post on the US debt: http://www.gordcollins.com/investment-2/massive-deficit-debt-china/ Do you think Obama generated the results he did get with that $20 trillion debt? If you don’t bring back the good paying jobs and reduce the deficit, how will you pay off that horrible debt? The US needed a strong leader, and although the Tweeting @realDonaldTrump is creating more friction, you have to admire how he’s standing up against the media who have a stake in the status quo. I hope as well that he will level the playing field between multinational corporations and small businesses like yours. My loyalty is with SMBs like your company!


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Though we don't know what will motivate a future market crash, it's likely to be something that will ultimately be recovered from if history is any guide. The economy and society are very flexible. Industries, and even countries, can rise and fall over time, but if you have a global, well-diversified and lower cost portfolio, then you should be well-positioned. This is an area where diversification helps. If you spread your bets it will likely help. You'll probably find that the next crisis centers on a specific country, part of the globe or investment theme. If you've spread your bets through diversification, then you'll undoubtedly have some assets that fall in value, perhaps alarmingly, but often certain assets can do well during certain crises such as high-quality bonds, more defensive or inexpensive parts of the stock market, or commodities including gold.
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