Comments on: Dow Plunges 387 Points on Subprime Fears

By: Dave Schuler

Dave Schuler — Fri, 10 Aug 2007 13:14:01 +0000

Additionally, the financial sector is a larger proportion of the economy than it was years ago (at least in dollars). One of the things that means is that the Dow is less attached to the underlying economy than it used to be. Sometimes the Dow goes up and down because if it didn't go up and down a lot of financial sector people wouldn't make any money.

By: Bithead

Bithead — Fri, 10 Aug 2007 12:57:25 +0000

it should also be suggested that with the Dow what the stratospheric levels and has been for the last few years, that a three or 400 point jump or drop is perhaps not as significant as it would be were the Dow at sub-10,000 levels. On a percentage basis a 400 point swing today is far less significant than it would have been years ago. Thereby, trying to attribute all kinds of gloom and doom to a simple case of profit taking is inaccurate at least and quite possibly self serving on the part of some.

By: marianne

marianne — Fri, 10 Aug 2007 03:51:40 +0000

It should be noted that there is a differentiated value for subprime or stated income loans in the commercial lending market. This loan type is not entirely bad despite the abuse of some in the residential lending arena. Oftentimes, individuals that want to start or acquire a small business, purchase a gas station, acquire a motel, open an auto repair shop or any of a myriad of sole proprietor establishements, and do not have the portfolio that would make them attractive to the big box leaders. Lending companies like Ocean Capital in Rhode Island offer subprime and stated income loans by using up close and personal evaluations of the borrower and the opportunity. We need companies like this to support new business opportunities.