Friday, August 31, 2007

"Sub-prime" Discussion Blasts Off

I have to apologize for not posting in a while, but I have just recently purchased my first new home and it took me a while to get things moved in and put away. Therefore, I am now a proud member of the "homeowners" club! Fortunately, I didn't let the "sub-prime" crisis scare me away from buying my first home. I am very optimistic about the housing market and feel it is a great time for buyers.

I have become increasingly aware of the "sub-prime" mortgage crisis, especially now that I own a home. Therefore, I decided to see what all the recent buzz is about. Also, I thought it would be ironic if my first posting since closing on my new home related to increasing "sub-prime" discussion.

As you all know, the financial markets are under a lot of scrutiny by consumers and the feds. Buzz regarding the "sub-prime" crisis has really taken off. The analysis below shows "sub-prime" discussion along with a few other topics financial related topics. I wanted to see if discussion about select financial institutions or investments are congruent with "sub-prime" discussion.

The analysis shows some interesting results. Distinct callouts include finding out that that online discussion Countrywide Home Loans and "hedge funds" in general correlate with "sub-prime" discussion, r = .71 and r = .72 respectively. Countrywide's discussion coincides with "sub-prime" as a result of consumers acknowledging that it began laying off employees due to the mortgage crisis in August 2007. Additionally, the fallout of several major "hedge funds" and other mortgage related securities has led to growing concerns amongst consumers online.

Feel free to contact me regarding these findings. I will continue tracking "sub-prime" discussion and update my findings as they are available.

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