More bad news from Wall Street today, with the Dow Jones Industrial Average tumbling 679 points to close below 9,000, the Dow’s lowest level in five years. According to the AP (emphasis mine):
U.S. stock market paper losses totaled $872 billion Thursday and the value of shares overall has tumbled a stunning $8.33 trillion since last year’s high. That’s based on preliminary figures measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 U.S.-based companies’ stocks and represents almost all stocks traded in America.
This latest tumble in the Dow comes only days after the Federal Reserve announced it was lowering key interest rates to help unclog the credit markets and promote lending to help the global economy. Typically an interest rate cut isn’t a “quick fix,” but rather a more long-term work to hopefully boost investor confidence. At this point, investors could use a boost to their confidence, given six straight days of triple digit losses in the Dow, coupled with news the Treasury is contemplating buying stakes in some of the nation’s banks.
The way things are going, it won’t be long before mall parking lots all across America are empty.
My “money guy” is famous for saying, “You gotta take a _long term_ perspective… long term perspective with financial markets…”
In that spirit, I am now on the waiting list for a 20 x 20 foot garden plot next year.
Heh…I’m my own “money guy,” and I have a long-term perspective and a recession-proof job, so I’m hopeful things will be okay. But if things get too bad, I might call on you for some vegetables from that garden of yours.