Dow fell another 119 points...anyone else getting used to this? No surprises there.
DJIA 7,062.93 -119.15 NASDAQ 1,377.84 -13.63 SP500 735.09 -17.74
CITIGROUP transaction was a big market mover today...B-A-I-L-O-U-T. Gov't converts its preferred shares into common stock and We the People now own a 36% stake in the bank. Stock in the company tumbled to $1.50/share. Perspective: we effectively paid nearly $70.00 for EACH share today.
GDP report showing further declines...-6.2%. GDP is a way to put a number to all the goods and services provided by the US and continued declines in that number means that we are bringing less wealth into the country...by producing less. The rate at which the GDP has been falling (due to lessened demand in the US AND abroad, stronger dollar and weaker currencies etc.) is the fastest erosion rate we have seen since 1982...yikes. Remember that when the dollar is strong vs. other currencies: THEY have to spend more of their money...to buy goods priced in OUR money. Result: we sell less. Strength of currency vs. others has been causing problems with Japan exporters. Their currency has been TOO strong...relatively. When Toyota or SONY sell things abroad...their profit is cut down when they convert to their home currency. *this is in part why Toyota is expected to post its first "down" year since 1952.
Have a great weekend and don't hesitate to call with questions,
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
