This entry was posted on Friday, October 10th, 2008 at 6:02 am and is filed under Khmer-Related, Business, Economy, Cambodian American. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Time to end the madness
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Loading ...Just when you think things can’t get any worse, the stock markets keep dropping. Shares of GM stocks have fallen their lowest since 1950– how many of us were born before 1950?
This is insane. Despite the global financial meltdown, I think the market is way oversold. If I had a lot of money that I won’t need in the next few years, I would buy stocks like there’s no tomorrow. The problem is, most of us are scared silly about how the carnage on Wall St. will play out on Main St., so we’re holding on to our cash assets, helping to exacerbate the problem.
What’s the worst that could happen if people buy into the market now? The Dow could reasonably drop 2,000 or 3,000 points. It will then fluctuate at those lows for the next year or two. Then, as the economy recovers, it will take off once again. There’s a time and season for everything.
Although the current crisis may very well mark the beginning of the implosion of western capitalism, it’s highly unlikely to be the final straw that breaks the camel’s back. Adjustments will be made– not only by governments to rescue their financial institutions, but also by ordinary citizens in their consumption habits, namely to cut down on excesses in life and to become less dependent on debt and credit. In other words, the crisis should force people in developed nations to consume more responsibly.
Everyone is behaving as if the Dow will plummet to zero. If that were to happen, then I guarantee that their stock portfolios are the least they’ll have to worry about. America would be in flames. There would be massive unemployment, shooting in the streets, rapes, robberies, looting and so on and so forth.
Chances are, that is not going to happen. The Dow will regain its peak of 14,280 set a year ago. Consumer confidence and market euphoria will return. People will be snapping up shares as the financial gurus predict Dow 20,000.
Until the next storm arrives.
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