Is it Halloween in September or what? Today (09/1502008) was a very scary day, financially speaking! The DOW down 500 pionts? Lehman Bros to be liquidated? A bank (Bank of America) now owns Merrill Lynch?
The worst day since 9/11, says the Wall Street Journal! I was terrified all through the News Hour with Jim Lehrer tonight; it was like watching a horror flick!
What’s going on this ninth of September, 2008? Could it be 1929 all over again? People jumping from buildings, soup lines across the country, famine and poverty nationwide?
I for one will not be jumping. And neither should you. This is simply the next wave of financial manager making bad decisions, just like the Savings and Loan debacle of the late 1980s. This too shall pass.
Short term you can bet economic instability will continue to plague investment markets, but expect the Fed to lower discount rates quickly to increase money supply and help steady the helm!
I don’t subscribe to doom and gloom from the mainstream press much, but this week will tell; if the markets can recover then no worries … if things go downhill all week on Wall Street then its anybody’s guess what the long term economic effect could be.
Hang in there and the bottom will occur soon enough … just as market peaks don’t last very long and are hard to foresee, so the bottom will come and go with very few ‘experts’ correctly predicting it in real time!
Our economy today has enough buffers to withstand the current situation so don’t let the fear mongers scare you into doing nothing with your investments. Don’t pull your 401k money out of the market and think about how you could afford to buy real estate within the next 12 months if you want to ride the next economic wave up baby! And keep reading Surf Rate to learn how to catch the big waves.