Almost nothing occurs in a vacuum, and that’s certainly true of the foreclosure situation mortgage lenders are facing. While there are those who say, “Too bad for the mortgage industry. Good thing I stayed in the stock market,” the truth is that this situation will affect all of our economy. If you don’t understand completely how the mortgage industry can affect the stock market (and vice versa) you need to click here and read the article by Jim Jubak of MSN Money. This piece gives a clear explanation of how and why things interact the way they do. This is a must read!
In a related story, Reuters is reporting that the dollar is at a 26 year low against the pound sterling, based largely on the mortgage crisis. You can read that story here.
Jim Jubak’s article is a real eye-opener. His statistics give all of us cause to pause and take a look at where our own investments stand in this quagmire. Thanks for bringing this to our attention.