No its not.
Not even close.
Yea the 778 point drop in the Dow is terrible, its even the biggest point drop ever according to CNN.
But that sure as heck doesn’t mean we are headed for another great depression.
Consider this, while the 778 point loss is the biggest point loss in history it is only about a 7% loss. Compare that to the stock market crash of 1987 where there was a 508 point drop which accounted for a massive 22.6% loss and there was no long drawn out depression which followed that incredible crash was there?
But, even beyond the crash of 87, today’s crash is relatively small in comparison with other market troubles of the past. After all, the 7% dropped we encountered today is only the 17th biggest drop of all time. This isn’t something that should keep you up at night, at least not as it stands now. Especially since this will most likely be sorted out in less than a week.
We should all know what is going to happen by now. It’s really quite simple and foreseeable. There will be news that another bailout bill is on the way, in fact there already is news of that, and the markets will regain some, if not a large amount, of their losses back. The bill will eventually pass since it doesn’t truly benefit either party to let these problems linger and that will reassure the markets and they will stabilize. Things won’t be good but they will be bearable again.
UPDATE: Oh look… the world isn’t coming to an end. Oh hey… what’s this? A stabilizing rebound of over 300 points? Who could’ve seen that coming?
2 thoughts on “It’s the end of the world! Oh wait…”
Great point. The media really does enjoy giving the bad news along with an editorial that is presented as truth. That “truth” always seems to be the least optimistic possibility as we see here with the impeding economic depression. Another cry of wolf.
When the economy is the main issue McCain seems to do worse in the polls, so it’s no wonder the media want to keep this front and center, even if it isn’t the end of the world. It’s up to conservative news bloggers to set the record strait.