Financial Crisis and Wall Street Bailout – What Do They Mean to You?
September 27, 2008
The Wall Street bailout and the banking financial crisis are on everyone’s minds these days. They’re consuming politics and the news coverage, filling everyone with an ominous dread of what the future holds.
How to Survive the Financial Turmoil
My advice is to turn off the television, radio, and ignore internet headlines. I’m trying to bury my head in the sand and pretend I know nothing about Washington Mutual’s latest failure and acquisition by JP Morgan Chase, AIG’s bailout, Merrill Lynch’s buyout, Lehman Brother’s bankruptcy, or Wachovia’s rumored demise.
Here’s what I’ve been doing: working harder, saving more money, and trying to earn more money. Here’s why:
- Have I lost thousands of dollars in investment value? –Yes
- Could I potentially lose my job, health care, and home? – Yes
- Is the value of the dollar (our buying power) continually shrinking? – Yes
Is there anything I can do about the “toxic debt” wracked up by big financial firms, the foolish debt taken on by thousands of Americans, or the efforts of the politicians to salvage the financial mess? – No
The Next Great Depression?
If we were talking about impending nuclear holocaust or a killer disease sweeping the country I’d be worried; but no matter what happens on Wall Street and with the economy we’re all still going to wake up tomorrow and go about our lives.
What if things get as bad as the Great Depression? What if we lose everything and have to relive the Grapes of Wrath? Well, if that happens then we’ll have to:
- work harder
- save more money
- and try to earn more money
If you recall, that’s what I’m already doing. So whether the financial ship is righted or the bottom falls out, I’ll be working on the same goals.
What’s the point of spending all our time watching the news and fretting over things we can’t control? Instead, I say shut off the media distractions and focus your attention on earning more money and saving more money… and hope the bottom doesn’t fall out : )
P.S. – Also check out Smart Money Moves to Make in Tough Times
All posts by Ben Edwards