Things I Don’t Understand – Recession
January 22, 2008 by Anne Wayman
Filed under Jobs
Like most I woke up to the news that the U.S. Federal Reserve did a surprise interest cut. Of course, they are using the word “emergency,” signaling fear is appropriate.
The talk of fear of recession has been building for months, almost as if someone wants us to be afraid. I don’t get it. I don’t know why markets crash unless it’s because of fear. When you think about it, what changed between Friday and today? Not much, except a lot of people and institutions got scared enough to sell off a ton of stock, driving stock prices down and down. Fear feeding on fear.
Why today or last Friday as opposed to next week or last week?
I always wonder who benefits from a recession… someone does I’m sure.
I don’t get it. Do you?
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As a business grad, I understand how the markets work, but one word you mentioned — fear — is the catalyst that can set things in motion.
It isn’t difficult to see that people who panic lose out while those who are patient and wait things out win. Just who is spooking who and for what reason is a mystery.
Then again it is a presidential election year.
Thanks Matt… you’re sort of confirming my sense of it all… just heard (again) how much debt this country has… both as a country and for individuals… scary, particularly since we manufacture so little anymore.
Just remember that the first rule of Wall Street is “Don’t panic.”
The second rule is, “Panic first.”
I don’t get either but I definitely agree with you that someone out there stands to benefit and they are most likely behind it. Beyond my personal budget, I find economics rather complicated and not too interesting. Someone’s holding the strings but who?
John, didn’t know that about Wall Street… just Hitchhikers Guide for the first part – panic first… what a deal!
Melissa, I’m never sure if I believe there’s a plot or conspiracy or just something like obvious corporate interest no matter what they damage.