Well, I got my IRA statement today, which was my 401k before I left my company, it was down about a thousand dollars.
Normally I would have decried the evils and incompetence of the holding company, who while I was working seemed to almost always lose value, if not for the regular contributions. This time however I felt almost lucky, I said to myself, “It’s only down a thousand, phew.”
Of course my good mood quickly evaporated when I caught the news and found out the Dow had dropped another 600 points. Just last year it was over 14,000, now it’s below 9,000, about 5 years backward. GM stock for example has lost about 50% of it value, bringing it to under $5 a share, it hasn’t been that low since 1950.
We’re playing a dangerous game these days, do we believe the news and stock traders, pull all our money and panic? Or do we believe the opposite and watch things unravel before our eyes? Personally I don’t want to take a loss so my money will stay put until I have to take it out, I just hope that’s not any time soon.
I’m going to say what I’ve felt for the last 5 years, we’ve been watching the start or an era, like the great depression. Not the exact same thing but just as monumental in it’s effect on our lives. It’s easy to ignore this as long as you’re stable or feel you are. Just like in the depression, not everyone lost out but the effect can not be ignored. The bad part is now we may be entering a Greater Depression, because this problem doesn’t just effect one country, but the entire world economy.
Only time will tell which way it goes, maybe, I hope, it’s just blind panic and everything is better then it looks. Life has taught me though, not to understate a problem.