New ultra roller coaster for 2008: The 'Wall Street'
Published: September 29, 2008 at 10:58 AM
That's the U.S. stock market's Dow Industrials average for today. With a nasty 400-point drop in five minutes, followed by an immediate rebound, then another 200-point drop.
Talk about some wicked airtime! Man, I hope those lap bars were well padded. ;-)
Let's make this an open thread, to talk about the stock market, the economy, the mortgage mess, or whatever else might be affecting your love for theme parks and ability to go visit them.
Personally, I think a lot of people in Washington and on Wall Street are operating under the delusion that what we have is a liquidity crisis, a crisis of confidence. I think what we have is a solvency crisis, due to banks abandoning sound lending principles. They gave too-large mortgage loans to people who would never be able to repay them, under the assumption that housing prices would rise forever, making the borrowers' inability to earn enough money to make those payments irrelevant. (They'd just refinance against the rising home values.)
That's a great Ponzi scheme, until you run out of
borrowers suckers. When we did, prices stalled, pushing some borrowers into foreclosure, leading prices to decrease, pushing more into foreclosure, causing prices to crash. Then the value of the securities backed by those mortgages crashes, as well. Leading us to where we are today.
What does this mean? Well, home equity loans paid for a heckuva lot of Disney World trips over the past six years. With those gone, life's gonna be tough for theme parks that don't have compelling new rides and aggressive discounts or deals to offer a cash-strapped market.