October 10, 2008
Egads!! Will there be anything left in a few more trading days??
It didn’t seem very many days ago that I was surprised to see the FTSE below 5,000 points. Suddenly it is below 4,000!!
I have long expected these days to come and the signs have been there for several years that the world economy is heading towards an abyss. But the thing I don’t fully understand is why the markets are open at all. These are not normal times and not normal measures are required. Maybe closing markets is too extreme. But it might work.
Of course, when would you reopen them? Would the problems all be stored up for the fateful 1st day of trading? Would it stop panic selling and thus help to stabilise the world economy for a few days?
Now is not a good time to be a stockholder / pension fund investor / collective investment investor / bond investor / saver / homeowner / borrower – pretty much anyone with any form of money or asset.
There is nowhere safe and nowhere to hide right now.
I keep having conversations with people that say ‘markets are more stable now’ and ‘if it gets really bad…’ but here we are. This is really bad and any stability is only temporary and comes at a very high financial price in terms of government borrowing.
I hope you are not planning to cash in your savings for a retirement anytime soon…financialguy