Gigantic Bank Pool Pledged To Avert Disaster as Second Big Crash Stuns Wall Street
Posted on 30. Sep, 2008 by Editor in Finance, Hot Topics
Does the above headline sound familiar? It should to some – to others, you may have recently read it doing historical research on the Internet. It was the headlines of “The World” newspaper, October 29, 1929.
How about this one:
Big Government Proposes $700 Billion Dollar Bailout to Avert Disaster as Another Panic Stricken Crash Stuns Wall Street.
That sounds like something in one of today’s papers, live news feeds, television news or even radio.
Isn’t that what happened Sept. 29, 2008? A major crash of -777.68 points? Not to fear or panic – Today’s headlines – Sept. 30, 2008 in CNN read: “Dow Comes Back Big”
The third-highest point gain ever for the blue-chip measure comes on bets that a bailout plan can get passed…
The third highest point gain… That is amazing. The nation should be more relaxed and sleep better tonight. Don’t let fear, panic and speculation create an inflated crisis if you can at all help it. Unlike the people in Louisiana last week when a radio broadcaster (in a small town that shall remain nameless for protection of the innocent) made a slip of the tongue and jokingly announce that there was no gas in the city – people immediately started to panic and soon everyone in the city was filling up their gas tanks. As they did, they inadvertantly emptied all the gas stations of fuel and it took several days for enough tankers to fill them all again so that the normal flow of traffic could resume.
A few years ago while I was in Louisville, Kentucky the weatherman announced that a major snow storm would be coming within the next 48 hours – people paniced and raced out and bought everything on the grocery store shelves whether they needed or ever used it just to make sure they had enough. The result, within two hours the store shelves were empty and in the end – not much snow fell.
What are the lessons that we can learn from personal experience and history? First of all – Don’t believe everything you are hearing or reading in the news. Don’t listen to all the hype of impending disaster, world economic collapse, we must rush to get the answer – we rushed in to Iraq looking for weapons of mass destruction also without waiting for all the results to come back from the United Nations Task Force – the result? Seven years later we are still looking for WMD’s.
Insist on cooler heads prevailing! Talk to your Congress people, and your Senate representatives. Wall Street has collapsed several times – and Wall Street has recovered. What made the difference was fear and panic. Fear and panic caused major selloffs in 1929 – because of the fear and panic and rushing ahead before thinking – it created a bigger problem that only escalated.
America will not collapse if Wall Street has to wait!
