The Incredible Shrinking Dow

Posted by Lorren on September 15, 2008

In case you haven’t seen the story today, the Dow dropped 500 points today.  It is now below 11,000.

Not sure how this will end up settling out, but it’s a good time to perhaps stock up on food?  Maybe do some research on how to be frugal?  Of course, that is good advice to anybody at any time.  You never know where the economy will take us.

My grandparents were little children during the great depression.  I remember grandma always using the funny word “frugal.”  She would try to make sure that when we cut out pattern pieces to make clothes, that we didn’t waste.

Perhaps the Dow will rebound tomorrow as bargain hunters try to jump on the “buy low” side of the “buy low, sell high” equation.  But that ignores that there is an underlying reason for the loss in the Dow.  People that have been watching could have seen this thing a mile away.  Fannie and Freddie, Bear Stearns, the incredible national debt and deficit, and most recently, the Lehmen Brothers have not put a positive spin on things.

But people have made it though difficult times before.  So no matter what happens, God knows what is going on.  Perhaps if we do go through an economic crisis, people will learn important financial lessons like being debt-free, frugality, and not being wasteful.