Quote:
Originally Posted by Ludachris
Is there a point in which the Dow Jones falls below that will cause a collapse in the system? Or can it continue to plummet without affecting the rest of us? It just dropped another several hundred points today. When should those who aren't invested in the stock market truly start worrying?
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People are of the assumption that this collapse of the financial
system is only going to affect Wall Street .Wrong. Many
of the companies you work for are invested and are traded on the
stock market. Many of them have lost large amounts
worth from the callapse meaning it won't have that to run its
operations and with the credit freeze it can't borrow. Pension
funds have been depleted meaning the elderly aregoing to be affected.Nobody is not going to be effected. Unfortunately no one
knows how bad it it is so everyone
is panicking. Some will be affected more that others but everyone
will be affected you just won't feel it for awhile .It tends to
take awhile to cascade down to main street . Right now the market is correcting itself just like the housing market is doing.
I don't think the majority will feel the affects of this until
the beginning of next year and I think the slowdown will be deep and
lengthy. Many people were living off the easy availability of cheap credit
to finance their lifestyles and that era is coming to an end.People buying
$500K houses here in ca. with a $50k salary is over and should be.
Its going to get very ugly for awhile so hold on.