Charlie Mangano over at Minyanville puts the credit crunch in perspective. He makes two simple points.
First, we’ve seen worse:
Since I’ve been on the Street, I’ve seen market crashes (’87), Bulge Bracket firms go under (Salomon Brothers), traders take down a firm (Barings Bank), one hedge fund almost take down the global bond markets (Long-Term Capital Management). I feel like the Forest Gump of Wall Street. Been there, done that, bought the deal toy.
During every one of these events, every pundit in the world rushed to tell you it was the worst it had ever been. This is the big one, Elizabeth! The assertion was that we were finished, dead and going to hell in an equity basket. Guess what, Elton? I’m still standing.
Second, progress moves from the bottom left to the top right but “not in a straight line”
OK, now Pollyanna has to admit to you that things are looking a little less than rosy.
So what? We still have families to feed, kids to educate, retirements to fund. This is no time to bury your head in the sand. But it is time to keep your wits about you. Emotions can run high during market turbulence – just the time reason should prevail. Saddle up and follow that advice, Minyans. I promise you’ll make it through The End of the World Part 3,527.
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