In response to the continuing snowballing subprime credit fiasco, the markets retreated beyond the 10% threshold to officially enter into “correction” territory today. Investors jumped ship after Countrywide Financial’s credit rating was downgraded and Residential Capital LLC joined the esteemed ranks of companies with “junk” credit status. Housing also torpedoed the market as well, as July starts came in at their lowest in 10 years. Bottom anyone? For the housing market - I think probably so. But in trying times like this I always listen to our buddy Warren Buffett:
“Generally speaking, when there is a certain amount of chaos…the fallout sometimes offers real opportunities”
Hey, it’s not the rosiest of outlooks, but I’ll take it.