Economic Worry

On the A.P. wires financial ruin approaches, but they fast forward the little men walking on the trading room floor. It seems odd, doesn’t it, that a corporate controlled entity would try and maximize the appearance of frenzy when their fate is linked with the fate of the stock-market?

Are they that hard up for news? Or performing a dubious public service? My finger’s curl a bit, but remain half open.

Crisis sells so well, it’s hard to trust anyone on the t.v. Too often, popular media is practically worthless. Fear seems to be a business now. Remember ‘America, the Promised Land’? There must have been a time when we weren’t mitigating our doom.

But I feel worry about the financial future of this country. Today’s news isn’t the financial hurricane, the great bomb, and that’s the scary part. Today’s news is more like the domino effect of the last year triggering many more dominoes. It takes only a little foresight and imagination to see that today’s economic blows have exponentially expanded the intensity and number of markets affected by the housing crisis.

Lenders won’t lend now. They are afraid, and they need their capital to ride out the trouble they’re in. This would be a big deal to the housing crisis anyway- without buyers the problem worsens. But that isn’t the only market.

America is a credit country. That’s how we buy things here- on loan: Cars, houses, furniture. When you have spooked banks you have a radical mutation of the economic flow of this country.

You also have another contributor to the fear cycle. Questions are already being posed by American Citizens: “Is my money safe?” “I’m insured by AIG, do I need to move?” “I’ve been using Merrill Lynch, do I need to place my investments elsewhere?”

There isn’t really any answer reassuring enough to stop the tide that has now started. On both sides of the aisle you have companies and consumers tensed and waiting to see what everyone else is going to do.



3 thoughts on “Economic Worry

  1. I fear not enough people realize that our money is completely imaginary, as opposed, for example, to Great Britain’s money. I fear that our troubles have only started, and we are very close to a complete financial collapse, in which our so-called money is nothing more than worthless pieces of paper. Some friends of mine have been converting their money into gold and moving it out of the country; I wish I’d had the foresight to emulate them. Things are, I think, going to get worse than we currenly have the capacity to imagine. I am continually haunted by terror, and I have been for the past two years. I sometimes think I’m the only person who sees this coming … this thing that will make the Great Depression look like a picnic in the park.

    But then, you know me. Not exactly the epitome of optimistic good cheer.

  2. My other half works in the equiv of wall street here and shock waves are going off left and right over lehman brothers and merrill lynch…..I mean they are huge and now completely stuffed. You know what winds me up? The top knobs have been creaming off milllions and millions in bonuses for such a long time; how short-sighted and greedy they are/were. It is going to get really tight……..and David, we are not as bad as the US on the credit front, but many here are maxed out on their cards and mortgaged to the hilt…..when I was young, credit cards were for one-off big ticket purchases, now they are used more frequently than cash. We’ve all bought into a bankrupt dream.

  3. If you are diversified, stay the course. That’s what we hear from all quarters. Our 401-K is with Vanguard, arguably one of the best, yet recent actions are bothersome. In the last few weeks, the Chairman announced his reitrement, as did heads of the two largest mutual funds. Did they know something then? For young people, this is a time of opportunity. Buy good stocks. For those of us living on stocks, where do we get some of that golden parachute the heads of Lehman, etc. walked away with? Do we have to sit here and take it?

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