From neighborhood staples closing their doors to investors seriously
questioning the viability of companies that have already received billions of
dollars in bailout funds, the economy continues to slide on a daily basis. A dismal
report released by General Motors Corp.’s auditors just this morning questioned
the company’s ability to survive $82 billion in losses over the past three
years.
"There is no assurance that the global automobile
market will recover or that it will not suffer a significant further
downturn," the company wrote.
It’s no surprise that this news, as well as concerns
about China’s
economy, caused the Dow to drop 200 points this morning. Analysts are already
predicting that it may fall to the unfathomable low of 4,000 points in the future, but then
again, 6,000 points seemed impossible less than two years ago when numbers
rose above 14,000 for the first time. But how concerned should we be each time the
market falters?
Carol Costello just did an informative story on how our
fixation with the stock market may be misguided. Sure, your 401K may be in
critical condition, but psychologist Dr. Joy Browne asks all of us an
interesting question: Did you become a multi-millionaire when the Dow hit
14,000 in 2007? Probably not. Browne says that if you have a job and pay your
mortgage, the crashing Dow is not likely to drain your bank account. Similarly, analysts
say that while the market is a key indicator about the state of our economy, we
shouldn’t be obsessing each time it ebbs and flows. While I think Browne’s
argument may be a little insensitive to folks who are unemployed and/or are nearing
retirement with what little is left of their 401Ks, simply worrying about your
finances isn’t going to add a penny to your bank account. Why not come up plans that will make
your money go further instead of panicking? You can even get started tonight by tuning into CBS 2 at
11 p.m., when one of America’s
top money-managing experts will teach you how to grow your money in these tough
economic times.
