When Do I Start To Panic About the Economy?

New Discovery- check this video out-

I've been trying to write this now for a few days and obviously other things keep getting in the way. Everyone is up in arms about a few things this week: $700 Billion gov't "bailout," the Dow Jones falling 777 points in one day, etc. What most people fail to realize about the stock markets is that they will eventually go back up. Isn't that what has happened in the past? Can we learn from history this time? So, what should you do when they go down? Panic and sell everything? NO, that's when you lose money. When it's low, you should buy, right? So, buy if you can. If you can't, keep investing in your mutual fund, 401k, etc. and watch it over the long term. So the dow went down. Guess what? Oil went down 10 bux a barrel too. Oh no! My house isn't worth as much as it was last month! Well, neither is the one you're going to buy, so go buy it cheaper. By the time your house goes up, the other one will too and so will the interest rates and your monthly payment will end up being more. Now, I'm NOT telling you to go run up your credit cards. Be sensible and pay those off. But, who is slowing down the economy? Who will save the economy? This republic was founded "BY THE PEOPLE AND FOR THE PEOPLE." The president, no matter who he is, didn't cause your problems, nor will he solve your problems.

$700 Billion is a lotta dough, granted. I'd like to see (I've googled a few things and can't seem to find it) how much the US dishes out in foreign aid, welfare, illegal alien related problems (I just had to open that one, didn't I?), pork barrel spending, etc. in a year. I'm always amazed at the millions we throw at other countries to help them and I look at the problems that we have and wish we could solve them with some of those funds. Let me get to the point. It's a lotta money, but correct me if I'm wrong, this is essentially going into our economy to help keep it going. Otherwise, we could run the risk of other foreign banks and investors coming in and scooping up on our stuff, eh? Some British banks are having a bit of trouble of their own, but recently I believe 2 banks from across the pond have invested in more wealth here in the states. See that? 232 years old and we still have to ask Mom to come and help us out once in a while? Whose fault is it? All of ours. It's that American right/privilege of greed. Even if we feel like we aren't a part of it or have contributed to it, we've still allowed it to go on unchecked. Very few have screamed "STOP!" especially on black Friday. The national debt is now going to be so far out of control, you say? I had a professor once that had this to say about the national debt- "so what?" I'm no economic genius, but I have yet to hear someone come up with a real and logical way that the national debt really affects us? Again, maybe someone can enlighten us all. Maybe it waters down the value of the dollar and therefore the yen, euro, etc. is worth more?

No comments: