No time for panic

As news of a lender bailout looms and quick changes in the stock market are reported, regular folks wonder what they should do.
According to some experts, no action is the best action at this time. Hasty action caused by panic does no one any good.
These recent financial downturns in our nation, and as a result in our world, are feeding concerns about our investment accounts and 401(k) plans, failing banking institutions, and the debate at Congress over spending more than half a trillion dollars to support lending institutions. Some people are losing money, while others are losing sleep worrying about losing money.
Some see the bailout as a handout to big business, but others see it as a buy in that would turn the economy around. Monday’s failed House vote sparked the largest sell-off on Wall Street since shortly after the Sept. 11, 2001, terror attacks. That’s serious.
And further complicating this already complicated issue, the nation’s fourth largest bank this week sold itself to Citigroup, concentrating Americans’ bank deposits in just three banks.
And while Americans watch how Congress handles the idea of a bailout, we must take stock in how we played a role in this situation. Did we over spend our paychecks each week, counting on creative financing to cover the gap? Did we buy a house, car, or boat that put us on the edge of our financial capabilities? Obviously, based on the number of recent foreclosures, some of us purchased homes that we could not afford. It’s time for Americans to get a grip on their spending.
History shows that the American economy can bounce back. Consider the highs and lows since the 1929 stock market crash, so serious that some bankers stepped outside the windows of their high-rise office buildings, committing suicide rather than facing financial devastation.
We’re certainly not to that point. In this case, the underlying economy is more stable, and we don’t have double digit inflation and unemployment.
Main street Americans must hold on to the idea that this situation will turn around. Already on Tuesday, stocks were trading higher at midday. That doesn’t mean the confusion and frustration is over. Experts say the economy will likely get worse before it gets better. But the quick change does indicate that things can change, change quickly, and change for the better.