What does all this Wall Street Mess Really Mean to Baby Boomers?
Posted by: in Your Business
A co-worker (who also is a baby boomer) came into my office yesterday and asked, “So what does all this financial stuff mean? Should I be worried?” I understand her concern. It is difficult to read the financial news these days. Top MSNBC news: “Wall Street’s a Mess.” Yikes!
Fannie Mae and Freddie Mac have been rescued from disaster at a cost to the U.S. taxpayers of many billions of dollars. Lehman Brothers is declaring bankruptcy. (This is a 158 year old company, folks.) Merrill-Lynch is accepting a buyout from Bank of America. Thee only good news out of all this is that oil prices have declined (at least temporarily). What’s next? What does all of this mean?
This “mess” is part of the up-and-down cycle of the economy. Things go up, things come down, just like waves. Over the long term, things keep moving up. It’s kind of ‘two steps forward, one step back.’ As I reminded you in my blog the other day, think long term.
How will all of this affect us individually? First, unless you have a mortgage that is coming due soon or you’re forced to sell your home, sit tight. Look at your investments and don’t buy or sell without careful thought and the advice of a conservative financial planner.
How will all of this affect our businesses? I know banks are skittish and might not be as willing to lend you money for business start-up or expansion, but the economy can’t continue with no infusion of new business, so they’ll ease up over the next 6 to 18 months. Read my About.com blog for tips on how to get a bank to lend you money.
In the short term, things will be bumpy, but they’ve been bumpy before (remember previous recessions?) and they’ll be again. And in between will be some superior financial times, maybe even a boom. Who knows what might trigger it?
The benefit in being old is that we’ve been here before and we’ll be here again and we know how to ride the economic waves.
Photo: PicApp (copyright Getty Images)
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