Sep 17 2008
The Sky Is Not Falling
It’s been all doomsday talk in the news for the past few days, what with the market dropping nearly 1000 points on the reality of a Lehman Brothers bankruptcy and the AIG bailout by taxpayers. Actually, bad news for more than a year now if you think about it (Fannie Mae, Freddie Mac, Bear Sterns, etc., etc.).
Rather than worry ourselves to death about things we cannot control, we’re looking at all this turmoil as a giant opportunity. Sure, we’re doing our part to save money where we can by clipping coupons, riding the bus, and avoiding using credit cards (unless paid off immediately); but we are also maxing out 401(k) savings — what better time to buy low! — and maintaining a modest emergency fund, and taking advantage of low interest rates. The markets will not always be so bearish, and stocks over the long run are the best bet for maximizing one’s retirement. Things will get better, they always do — but it’s likely to be a bumpy ride for a while at least. Hang in there, and take advantage of the current market chaos.
Edited 09/22/2008 to add: Okay, so maybe the sky IS falling a bit, now that this whole mess is being unwound and estimates are north of $30 trillion had the Fed not stepped in when they did. It is all quite scary stuff. But, hold fast! Things will get better, maybe starting 2010. Lots of bargains out there, take advantage…
