Let's All Take a Deep Breath

CNN's Suze Orman Don't let this woman scare the wits out of you

Today, after reports that a Federal Wall Street Bailout Deal would pass proved to be false, the Dow Jones Industrial Average dropped 6.98% (778 points). In total, the losses suffered totaled approximately $1.2 trillion dollars; nearly double what the federal bailout plan would have cost taxpayers. While the losses we saw today were substantial lets all take a deep breath and look at this objectively. This evening’s edition of Anderson Cooper 360 literally ran a 20-30 minute economic segment based on the assumption that the money lost today would be gone forever rather than focusing on the long term performance of a fluctuating market. Investors are extremely anxious about the steps the federal government will take to clear these bad loans so banks can begin lending again. Such apprehension is natural and there is no doubt that markets will continue to drop. However, investors are looking for stability; the federal bailout, with all its flaws provides that. Let’s understand that while we suffered a huge hit today it was just one day. Congress will ultimately pass something along the lines of what was voted on; that should provide some stabilization. Remember, we ARE lending out $700 billion dollars – I know that we don’t have an infinite amount of time to pass this bill but this may or may not be one of the most important provisions signed in our lifetime. If Congress wants to mull over it an extra day I’m sure we will all be here tomorrow.