As The Market Burns

Tossing and turning throughout the night, I finally gave in and got out of bed around 5 am. Watching the stock market plunge over the past two days has been weighing heavily on me. Over the years, thinking that it's the smart thing to do, I've invested heavily in my 401k. Even at a modest gain, my retirement was looking like it might be a comfortable one. I'm not so sure anymore......

How far will the market drop? Should I shift all of my investments? Or should I leave things alone and hope that we're only experiencing a temporary setback? After all, when I lost my ass a few years ago, I wound up getting most of it back. Will the same thing happen this time?

As much as I want to be optimistic, it's extremely difficult this time around. With our country's AAA credit rating being downgraded for the first time in history, I think I have a legitimate cause for concern. Some of my biggest worries:

•  I expect the cost of borrowing to go up in the near future. And this can only cause a trickle down effect across the rest of economy. 
• I don't expect the unemployment numbers to get much better anytime soon. Many of my colleagues who have lost their jobs are still looking for work. And the ones who are working, have settled for jobs that pay a much lower wage and reduced benefits. 
• Less people working results in less overall spending which ultimately translates into lower tax revenue. And I believe that this will cause the government to seek more taxes from the working class at a time when they can least likely afford it.
• The government is  now borrowing forty cents for every dollar it spends. How long can we sustain this kind of fiscal nonsense? Think about it, if you had to borrow $500 to pay your mortgage every month, how long do you think it would take until you were out on the street? This is scary stuff......
• With the "dumbing down" of our education system, we are sending our kids into a world where, instead of becoming contributors and leaders, they are more likely to become dependent on an already bankrupt system. 
• We continue to trust the same politicians who got us into this mess to get us out of it. I think most of them are clueless. Sadly, many of the  people who could actually help the country refuse to run for office because of today's cesspool of political mudslinging.

Our country is in trouble right now. And it really bothers me to see all of the bickering in Washington. All I hear lately is "It's not my fault!" Who really cares who's fault it is? Hell, they can blame me for all I care! But what we really need is someone who can get us out of this mess!!

kw