New York Stock Exchange

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For the first time in my life, I was mistaken

Seriously, folks, I uncharacteristically overreacted in my post last Friday about Wall Street’s breathtaking plunge the previous day.  Is my face red.

Although I was correct in predicting that the market would close lower on Friday, I was rash in expecting that the events of Thursday would kill the Big Apple’s housing recovery until fall.

I make this acknowledgment after surveying several lawyers, lenders and brokers, despite some notable short-term effects. Continue reading →

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Thursday’s roller-coaster ride was no amusement

Thursday was one of those days that will go down in stock market history.

I was working at my desk and, as I frequently do, had a TV tuned to MSNBC yesterday afternoon.  So I witnessed the horrifying plunge of the Dow Jones Industrial Average by nearly 1,000 points and then it’s partial recovery in second and minutes.

Although I’m no economist, I don’t see why it would be foolhardy of me to make one prediction for when the New York Stock Exchange closes today:

The Dow will be lower than at the opening. Continue reading →

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Five reasons to be cautiously optimistic

1. New jobless claims filed last week fell to their lowest number since January in data released yesterday, though 512,000 individuals were newly out of work.  Yet the number is down from the 700,000 and 800,000 weekly numbers during the depths of this recession.  Of course, it is not irrelevant that the unemployment rate is topping 10%.

2. U.S. business productivity grew at its fastest clip in six years in the third quarter.  The Labor Department said on Thursday that productivity surged at a 9.5 percent annual rate, the quickest pace since the third quarter of 2003.

3. The Dow increased 203.82 points, or 2.1 percent, to 10,005.96 at 4:01 p.m. in New York for the biggest advance since July 23. The Standard & Poor’s 500 Index rose for a fourth day, adding 20.13 points, or 1.9 percent, to 1,066.63.  And more than nine stocks gained for each that fell on the New York Stock Exchange.

4. Expansion and extension of the home buyers tax credit.  (See previous post.)

5. Finally, envious though we may be, top producers on Wall Street are looking forward to blowout paydays once again, somewhat diminishing the prospect of a wan real estate market in Manhattan next year.  Continue reading →