The Housing Market Crash of 2007 was the worst housing crash in U.S. history. The Housing Market Crash of 2007 was the cause of the financial crisis. This nearly caused the U.S. to experience another depression like the Great Depression. There are a number of things we can look at to determine how the housing bubble occurred and what happened to cause the bubble to collapse.


As you can see from the numbers Dennis has on the housing market, things are much better than they were before the last crash. Lending guidelines are much tougher no matter what you hear. I see posts on Facebook all the time about how people can get low-money-down loans now, and that means the housing crash is coming. Low-money-down loans have been available for decades, and that is not what caused the housing crash. Really bad loans to people who should not buy houses is what caused the housing crisis. Those loans do not exist anymore, as you can see by the data Dennis provided. Yes, it is possible to get a loan with less than a 600 credit score, but very few people are actually getting those loans. When you look at the housing market, you need to look at the real numbers of how many houses are being built, what kind of loans people are getting, and how much house people can afford. Houses are not being built like they were before. The loans people are getting are much higher quality, and the market is much more stable than it was before.
Benjamin Graham once observed that in the short term, the stock market is a voting machine. That's what it did today. It went up or went down based mostly on popular opinion, blown by the wind. In the long term, it's a weighing machine, which reflects the true value of businesses in their stock prices. That's why it's so important to think like an owner, and not just a trader.
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Having been suspended for three successive trading days (October 9, 10, and 13), the Icelandic stock market reopened on 14 October, with the main index, the OMX Iceland 15, closing at 678.4, which was about 77% lower than the 3,004.6 at the close on October 8. This reflected that the value of the three big banks, which had formed 73.2% of the value of the OMX Iceland 15, had been set to zero.

Good harvests had built up a mass of 250 million bushels of wheat to be "carried over" when 1929 opened. By May there was also a winter-wheat crop of 560 million bushels ready for harvest in the Mississippi Valley. This oversupply caused a drop in wheat prices so heavy that the net incomes of the farming population from wheat were threatened with extinction. Stock markets are always sensitive to the future state of commodity markets, and the slump in Wall Street predicted for May by Sir George Paish arrived on time. In June 1929, the position was saved by a severe drought in the Dakotas and the Canadian West, plus unfavorable seed times in Argentina and eastern Australia. The oversupply would now be wanted to fill the big gaps in the 1929 world wheat production. From 97¢ per bushel in May, the price of wheat rose to $1.49 in July. When it was seen that at this figure American farmers would get rather more for their smaller crop than for that of 1928, stocks went up again.
Did you ever stop to think about how goods and services can’t teleport? We don’t have teleportation technology – or magic, for that matter. So when a president/congress decides to move the economy, it takes *time* for the economy to react. Policies take time to come in force, markets take time to guage impacts and respond accordingly, equilibrium is established only after a long series of interractions. It takes *years* not days or weeks. You don’t judge a president (or congress) by what happens immediately after they take office (read: the economic meltdown during Obama’s first term, or the economic uptick during Trump’s first few months). You look at what happens two years into their term of office, with acknowledgement of the context.
Be sure to check out used bookstores, libraries, and garage sales, too. Look for books that teach self-reliant skills like sewing, gardening, animal husbandry, carpentry, repair manuals, scratch cooking, and plant identification. You can often pick these up for pennies, and older books don’t rely on expensive new technology or tools for doing these tasks.
The crash followed a speculative boom that had taken hold in the late 1920s. During the latter half of the 1920s, steel production, building construction, retail turnover, automobiles registered, and even railway receipts advanced from record to record. The combined net profits of 536 manufacturing and trading companies showed an increase, in the first six months of 1929, of 36.6% over 1928, itself a record half-year. Iron and steel led the way with doubled gains.[19] Such figures set up a crescendo of stock-exchange speculation that led hundreds of thousands of Americans to invest heavily in the stock market. A significant number of them were borrowing money to buy more stocks. By August 1929, brokers were routinely lending small investors more than two-thirds of the face value of the stocks they were buying. Over $8.5 billion was out on loan,[20] more than the entire amount of currency circulating in the U.S. at the time.[15][21]
There are a few things to bear in mind here. The first is that investors can overestimate their ability to endure losses during the good times. So be a little more conservative in your allocation than you might think. Also, it's not just about having nerves of steel, it's also about how soon you'll need the money in your portfolio. Even if you are a fearless and disciplined investor, it doesn't matter if you need to spend down a big chunk of your portfolio each year. Regardless of your temperament you'll be a forced seller in a weak market, and therefore, considering having some of your assets more conservatively positioned so that they are a more robust source of cash when you need them can make sense.
Spread your risk. Having a well-designed mix of investments is a great idea anytime, but especially so in a down market. That's because you don't take a pounding by having all your eggs in one potentially leaky basket. Studies show that holding a judicious mix of growth and value stocks, possibly in international as well as U.S. companies, and some bonds and cash investments too, is a great way to minimize investment loss.
As the year drew to a close, the Bureau of Economic Analysis revised its growth estimate higher. It said that the nation’s gross domestic product had increased 0.5 percent in the third quarter. Its prior estimate said it had shrunk 0.5 percent. It seemed the U.S. economy could shrug off a housing downturn and banks’ liquidity constraints. The Dow ended the year just slightly off its October high, at 13,264.82.
The crash followed a speculative boom that had taken hold in the late 1920s. During the latter half of the 1920s, steel production, building construction, retail turnover, automobiles registered, and even railway receipts advanced from record to record. The combined net profits of 536 manufacturing and trading companies showed an increase, in the first six months of 1929, of 36.6% over 1928, itself a record half-year. Iron and steel led the way with doubled gains.[19] Such figures set up a crescendo of stock-exchange speculation that led hundreds of thousands of Americans to invest heavily in the stock market. A significant number of them were borrowing money to buy more stocks. By August 1929, brokers were routinely lending small investors more than two-thirds of the face value of the stocks they were buying. Over $8.5 billion was out on loan,[20] more than the entire amount of currency circulating in the U.S. at the time.[15][21]

The stock market crash of 1929 – considered the worst economic event in world history – began on Thursday, October 24, 1929, with skittish investors trading a record 12.9 million shares. On October 28, dubbed “Black Monday,” the Dow Jones Industrial Average plunged nearly 13 percent. The market fell another 12 percent the next day, “Black Tuesday.” While the crisis send shock waves across the financial world, there were numerous signs that a stock market crash was coming. What exactly caused the crash – and could it have been prevented?
Usually, HFT programs and computer trading works without a hitch. But once in a while problems do crop up. Back on Aug. 24, 2015, the United States’ three major stock indexes plunged on the open, but would recover much of their losses by midday. Among the reasons blamed for the dip were market makers and HFT traders. With so many stocks within the S&P 500 failing to open on time, and a number of exchange-traded funds under trading halts, HFTs and other high-speed traders shut down their systems, removing much-needed liquidity from the marketplace and exacerbating the early-day decline.
It’s hard prepping on limited funds especially with young children, believe me I know. Every two weeks when I get groceries I take an extra $20 and get basic staples to store in my emergency pantry. It doesn’t seem like much but it adds up especially If you use it a Aldis, shop n save, etc. Then when I have extra cash I use it on the other important things besides food. Just keep going your doin a lot better than most. Your kids will thank you for it. 🙂
I don’t know this much, if the grid is taken down, dileberately or not, once it goes down, it will trigger according to my scientits friend, The One Second After event. It will be like what i just posted. He said that this book, One second After is the actual research done on the effects of EMP and what to expect if the grid goes down. So we need to be ready. Any one without food and water is completely screwed. If the stock market is crashing right now, and we know it’s and engineered crahs involving Russia, China, and the US cabal, then we need to get ready.
If we, in short order, enter into a recession it will be directly related to the bail outs and QE put in place under Obama’s watch. They did what they thought was best, but much of the benefit of all this asset inflation has not gone to the average person and it has put us in uncharted territory as we begin to embark on an unwinding journey in the Fall.
The facts are that you need a house in Canada because it’s too cold to live outside. So in that sense, the house regardless of it’s monetary value is worth more for its intrinsic value which is as it should be. I could make a very convincing argument that primary residences are not investments at all. I have a 4 year old and I do know quite a bit about the real estate market. In fact if I sold my house right now I believe that it would work out really well financially. However I also know a lot about landlords because that is my business. I would not choose to subject myself to that market because simply I do not believe that the rental market as it stands is sustainable for many landlords. Landlords do have to “cheap out” on their houses because they are generally not going to be willing and in some cases able to maintain the house over time. As a tenant what do you do if a landlord can’t afford a new furnace or roof? What if they decide to sell the house, the timing may be really bad for me. I like the additional control and security owning my own house free and clear gives me.
On October 29, William C. Durant joined with members of the Rockefeller family and other financial giants to buy large quantities of stocks to demonstrate to the public their confidence in the market, but their efforts failed to stop the large decline in prices. Due to the massive volume of stocks traded that day, the ticker did not stop running until about 7:45 p.m. The market had lost over $30 billion in the space of two days, including $14 billion on October 29 alone.[15]

Another criticism of certain conventional risk models, is that they regard market crashes as extremely unlikely. Market models suggested 2008 was an incredibly rare event. However, the 1930s crash was fairly similar. Having extremely improbable events just eighty years apart makes very little sense. Of course, we could be massively unlucky, but it is of course far more likely that the model is wrong. And by wrong, we should be clear that we mean inappropriate for the high stress environments of a crash. Most of the time these models hold up just fine, but at the extremes they don't.
October 2018 is turning out to be a lot like October 2008.  The S&P 500 has now fallen for 12 of the last 14 trading days, and it is on pace for its worst October since the last financial crisis.  But the U.S. is actually in much better shape than the rest of the world at this point.  Even though they have fallen precipitously in recent days, U.S. stocks are still up 3 percent for the year overall.  On the other hand, global stocks (excluding the U.S.) are now down more than 10 percent for the year, and they are down more than 15 percent from the peak of the market in January.  All it is going to take is a couple more really bad trading sessions to push global stocks into bear market territory.
On October 19th 1987, $500 billion in market capitalization was evaporated from the Dow Jones stock index. Markets in nearly every country around the world plunged in a similar fashion. When individual investors heard that a massive stock market crash was occurring, they rushed to call their brokers to sell their stocks. This was unsuccessful because each broker had many clients. Many people lost millions of dollars instantly. There are stories of some unstable individuals who had lost large amounts of money who went to their broker’s office with a gun and started shooting. A few brokers were killed despite the fact that they had no control over the market action. The majority of investors who were selling did not even know why they were selling except for the fact that “everyone else was selling.” This emotionally-charged behavior is one of the main reasons that the stock market crashed so dramatically. After the October 19th plunge, many futures and stock exchanges were shut down for a day.

However, with managements of these NBFCs trying to allay fears and dismissing reports of debt defaults, the market staged a recovery. Reports also emerged that DSP Mutual Fund had managed to sell some short-term paper of DHFL at 11 percent discount in a bid to build liquidity against its exposure to IL&FS. This led to the massive fall in the market as well.
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 stocks are known as high beta stocks, as they outperform on the way up and underperform on the way down. During a bull market, these high beta stocks are often the stocks that perform best. As a result they will grow into the largest positions in your portfolio. That’s why it’s a good idea to rebalance your portfolio and make sure the weighting of these “high beta” stocks aren’t too high. Here some more ways to prepare for a stock market crash:
Some academics view the Wall Street Crash of 1929 as part of a historical process that was a part of the new theories of boom and bust. According to economists such as Joseph Schumpeter, Nikolai Kondratiev and Charles E. Mitchell, the crash was merely a historical event in the continuing process known as economic cycles. The impact of the crash was merely to increase the speed at which the cycle proceeded to its next level.

i would completely disagree with you on the lending to people who should not have gotten loans part. I was a person who got a loan during that time. I made all my payments, but it was a stated income loan with almost no verification of income. I basically said I want to buy a house for this much and they said okay. Things are so much different now.
It's good to examine your overall portfolio regularly, to make sure it's structured as you want it to be and that you're holding the stocks you want in the proportions you want. For example, if one holding has grown far faster than others, it may now make up a very big portion of your portfolio. Ask yourself if that's OK, and consider paring back that position at least some, especially if the stock seems significantly overvalued. You don't want too many eggs in one basket.

Economic effects of the September 11 attacks (2001) Stock market downturn of 2002 Chinese stock bubble of 2007 United States bear market of 2007–09 Financial crisis of 2007–08 Dubai debt standstill European debt crisis 2010 Flash Crash 2011 Tōhoku earthquake and tsunami (Aftermath) August 2011 stock markets fall 2011 Bangladesh share market scam 2015–16 Chinese stock market turbulence 2015–16 stock market crash 2016 United Kingdom EU referendum (Aftermath) 2018 Cryptocurrency crash
AE good tip, and believe me I do Trek where the the Grizzlies Roam. I always carry a big sidearm and considered myself to be rather macho, but after watching serveral videos on bear attacks, I will still carry my gun but Bear Pepper Spray will be my first defense. Bear Spray may also be the best way to go when facing 4 federal agents at your front door, probably more affective and if and when they get you, there will be no murder charge against you. And BTW I just killed a big black bear with my bow. Trekker Out.
But you should also crunch a few numbers and then do a little soul searching. Estimate how Vanguard's suggested mix would have performed during the late 2007-through-early 2009 slump, when stock prices declined nearly 60% in value and investment-grade bonds gained about 7%. If you think you would cave and begin selling in the face of such a loss, you might want to dial back your target stock position a bit.
Indian stock markets witnessed a steep and sudden sell-off in the afternoon deals on Friday. Rajat Sharma of Sana Securities told FE Online that stock markets are "extremely overvalued" and Sensex can fall even 2,000 points from here while NSE Nifty can correct by about 1,000 points. "Nothing has changed fundamentally, I mean we have the same macro-economic situation, etc, but when a sell-off happens, nobody can predict, Rajat Sharma said further. 
In 1987, you had an economy that was slowing from a rapid recovery, Treasury yields that were huge and falling, and an inflation rate that was running around 4%. Today, you have an economy that is just starting to boom, Treasury yields that are low and rising, and an inflation rate running around 2%. In other words, the economic conditions are starkly different.
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