It's easy to get scared when you listen to the talking heads -- and when the Congress (the Republicans especially) so irresponsibly and even irrationally votes down the so-called bailout that, while imperfect, would at least allow us to regroup.
At such a moment it's important to remember these axioms:
1) Financial markets always overreact and then correct. For example, yesterday's precipitous drop in the Dow (more than seven hundred points) and today's partial recovery (over three hundred points up as I write).
2) Never pull the trigger (or the plug) when markets are in chaos. Better to do nothing. Today is the last day of the quarter, and quarterly statements are about to be issued. You may want to file yours without reading it first.
3) Don't panic. If you are prone to panic, reread # 2 above.
4) History repeats itself -- but always with variations. Despite comparisons to 1929, there are major differences, legal protections in place along with the apparatus to implement necessary regulatory changes as well as changes in accounting methods to preclude such upheavals in the future.
