Tuesday, September 30, 2008

Reality Check

I'm not buying gold. I'm not hoarding canned goods. And I'm not stocking up on ammunition for the coming implosion of the entire US economy.

Don't get me wrong--yesterday's stock market drop of 777 points was serious. And my retirement fund is down a net 14% this quarter. That stinks. But those 777 points on the Dow were in a market at 11,000. Back in 1987, the 500-point drop came on a market at 2500. THAT was really bad. And by 1989, I was making 29% a year in mutual funds. I have great faith in capitalism, and the law of averages.

Sure, there need to be some fixes. I personally would repeal mark-to-market accounting rules, for instance. I'd definitely increase the limits of FDIC insurance on bank deposits. And there may need to be some government intervention in terms of insuring or even holding some of the bad debt that is clogging the credit markets. But it's pretty clear that "we the people" didn't want the $700 billion plan that was proposed.

I don't blame those congressmen. Their constituents told them in no uncertain terms to vote "no." And they did. That's what is supposed to happen in our system. Either you believe in "we the people," or you don't. I do.

Finally, and this is the most important thing: neither economics nor politics is my religion. Even more than I believe in the USA, capitalism, or conservatism, I believe in God. And He is sovereign over all. That's what is real.

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