By Tom Ashbrook.
Market volatility is the nice way of putting it. By the end of last week, the Dow Jones industrial average had lost 800 points in the big summer sell-off of 2007, and the ride isn’t over.
After years of lining the pockets of the hedge fund rich with the IOUs of the subprime mortgage poor, the low interest blowout is over. A credit crunch is on.
Mortgages are more expensive. So is the money that drove the private equity whirl. And holding the bag at the end of the party? Maybe you.
This hour On Point: Wall Street’s big wobble, and where we go now.
Guests:
Greg Ip, economics reporter, The Wall Street Journal
Robert Shiller, professor of economics at Yale University and co-founder of “Macro Markets,” a specialty investment bank that trades in real estate markets
Allen Sinai, chief global economist, strategist, and president of Decision Economics, Inc.
