(I thought the Businss Forum would be best for this brainstorm session.)
Time to be creative. In of the recent events, many people are expecting a stock market crash as soon as Wall Street resumes business. Even if you do not have a background in economics, I want to hear what ideas anyone may have that they think the government or private businesses can do to help deter any major economical impact. As a country, we have many economic safeguards in place, but just like the strength of the buildings, they probably are not prepared for a disaster like this.
This is just something to ponder and brainstorm. I expect that over the next few days, some drastic and almost artistic economical maneuvers will be made to help prevent any economic tragedy. Any guesses?
USA Today said that the Fed was considering an immediate rate cut to bolster consumer confidence.
European and Japanese markets declined 5 to 10%, apparently. European markets have stabilized while Japanese markets reached the lowest level in 17 years (although they have been in recession for 10, so their markets were low, anyway.)
I am grateful the markets have stayed closed. I think it is giving U.S. businesses a chance to regain their footing before panic is induced by a crash. I'd like to think that economists have helped avert a major crash by keeping the markets closed for so long.
There is a tremendous amount of money being poured into recovery efforts right now. Individuals from all across the country are giving from their income to help. Not to be crass, but that money will be recycled in the economy. Everything that was destroyed will need to be replaced (Even if they never rebuild the buildings, there will need to be offices elsewhere to house the businesses that were there.
I think helping to get those businesses relocated and up and running again will be a major boost to the economy.
I'm not sure what is going to happen, but there is so much patriotic feeling running right now....I would not be shocked to see people pull together to make sure the economy doesn't just collapse. Surely that is part of what the terrorists intended to happen by choosing the targets they chose.
I've got to do what I've got to do: make sure that my people, my employees are taken care of.... but what is the best way to do that? Conserve? Don't spend much? Reach out? Spend more?
This is our busiest month of the year, and the month that makes our year financially. Our daily sales were cut in half from the second of the crisis. Fed Ex not being able to fly has grossly impacted our delivery system.
I had a catalog scheduled to go to press on Friday. Each catalog is about a $100,000 investment....I met with my staff and we discussed whether or not to pull the catalog. I could pull in and conserve, or put the $100,000 out there and trust that this new world would respond. In the end, we decided that stopping our normal plans was exactly what the terrorists wanted, and we weren't going to change our plans.
If the people who receive my catalog have made the same decisions, then they will order from the catalog as they would have previously. It's kind of like the whole "Pay it forward" mentality. Individuals and individual decisions for the greater good will make the difference.
Andrea
I don't think the economy will crash, though I do think the stock market might tank for awhile, like it's been doing all year anyway. Frankly though, I look at it this way: I can buy stocks on sale. I am 35 years from retirement so though I've lost money on paper, I doubt that will always be the case.
Last weekend my husband and I dropped off his wedding band to have it sized. When I swung by the jeweler's on Thursday to pick it up, there were a few customers in the store ahead of me. One of them was an older lady. The jeweler had specially ordered/found a Brazilian ruby for her. She looked at it, said it was pretty and then gave it back to him. She said she just couldn't do something so self-indulgent "right now" and "all that happened" (implying after the terrorist attacks).
Actions like that will make the economy suffer. The jeweler purchased the stone on good faith that the customer would buy it, and she bailed out (I'm sure he'll sell it to someone else or send it to another jeweler, etc.) for what seem to me more selfish reasons (buyer's remorse) than buying the stone would have been. I don't know the whole story, she could have a family member that was killed and she feels the need to lend financial support to his/her surviving children, etc., but she had not outward signs of grieving and did not give that as an explanation.
--naomi
I have been talking with my financial adviser (who, even though he is, in accordance with the cliche, my brother-in-law, is a very shrewd person whom I totally trust) about rolling over my IRA into something better than a 3.8% account. When this hit, I asked him if it would be a good idea on a)patriotic, and b)fiscal grounds to buy more stock.
He said he didn't think much of this as a patriotic gesture, but of course "buy low" is a good idea. He IS a patriot - an ex-Marine - but believes that keeping your money in the bank (i.e. not under the mattress) and going about your business as usual is the way to express your patriotism.
BTW, we will be flying out to Seattle to visit him and his family in a few weeks.