Mass Exodus on Wall Street – What about Main Street?
September 30, 2008 – 7:56 am
Nature's Mass Exodus
Good morning. Or is it? For many of you, today is a day of anxiety as we collectively await the news of the Federal Bail-out. Wall Street’s mass sell-off yesterday is expected to continue until something gives? Chances are that something will be your 401-K plan. Most of us, no matter how diversified we are will feel the pinch this quarter, and the bruise will probably last through next quarter. Can the House salvage the bill or put forth a better plan? Will it even make a dent in the panicked market anyway? Only time will tell and I do not have a crystal ball. What I can tell you is that now is the time for calm, faithful composure. A time to stop and think about where your priorities lie.
Of course, that’s always easier said than done. But I truly believe that most of us will weather the storm intact. Sure, we’ll probably see a major drop in our overall asset value, but we are still so much better off than the average person on the planet. Most of us will still have our primary residences, our jobs, our families and our savings accounts. For those who survive on dividends, you will get hit hard and may need to curtail spending or find an alternative source of income. Perhaps this will be the impetus we need to reapply our long-unused skills. Remember, America was born on the entrepreneurial spirit.
For others, the mortgage crisis may keep you from buying your first home until you save more on the down payment. I’ve got news for you: that’s how it should be. If you ask the average person over 50 about their first home, chances are 90% of them will tell you that they scrimped and saved for a long time and still wondered how they were ever going to afford the payments. They did afford them, through good old fashioned hard work and prudent spending habits. They didn’t have everything they wanted and therefore valued what they did have. Somehow, we’ve lost that sense of work ethic. It seems like these last ten years have seen Americans adopt a credit-ethic in place of a work ethic. Why work and save when you could charge it instead?
As Americans our biggest hurdle will be our pride. I urge you not to let that stand in your way. Do not be ashamed to ask for assistance or get another job. Don’t be afraid to move your money into safer accounts, or spend less on Christmas presents. Remember the best things in life aren’t things. Besides, sometimes it is the exposure of our vulnerability that eases our burden and helps us begin the healing process.
Keep the faith. If I can be of any assistance, please call on me.
