As Markets Get Hammered, Mortgage Finance Stocks Dip
The Dow Jones fell today nearly 1,000 points before clawing back some of its losses, and the London-based FTSE also dipped for the fourth day in a row, as American and European financial markets faced the spectre of negative overhang from the debt crisis in Greece. The Nasdaq and S&P 500 also were on the decline, according to MarketWatch, in a reverse of the recent bull-run. And as HousingWire's real-time mortgage finance Dow tracker indicates (recent screen shot right before market close), money in the market moved away not only from the big banks and lenders but the GSEs as well: The Dow rebound continued as above to close down 347.8 points, at 10,520.32. Traders in the Markit iTraxx SovX Indices, a family of sovereign CDS indices covering countries across the globe, also experienced negative activity. "The crisis has stepped up and the inmates have taken over the asylum," said Suki Mann, a credit strategist at Société Générale. "The bailout we wished for so hard came and seems to have passed without having the desired impact." "This is a much bigger crisis than the Lehman one, but the market has yet to recognize it," Mann said. "And just like the US authorities before it, the European authorities are way behind the curve." Write to Jacob Gaffney. The author holds no relevant investments.