No Panic
A number of small, no-name banks went under last week causing small runs on banks all over the nation. I saw pictures of angry penny-savers mobbing police-guarded doorways. The only difference between depression bank runs and these are the number of bowler hats.
This appears to not be limited to small banks, however. Wachovia is apparently collapsing and a particularly distraught branch is being accused of passing counterfiet bills. Bank of America is also said to be hurting.
Lucky gen-Y’ers, new to money and with relatively small amounts to lose, are frothing at the bit for inexpensive real-estate and milking their earning potential. In my circle of friends we are still throwing large amounts into our 401k with the assumption that the economy will rebound and we will never recieve a pension.
I think that despite all the bad news, we are still generally upbeat. It is as if Americans, and particularly gen-X/Y, were expecting this like a hangover. The party was called “Fuck It: We’re Gonna Drive This Thing into the Ground”. Only the party goers who didn’t know what they were doing are surprised (and foreclosed on).
We continue going through the motions our parents and financially-savvy family members have recommended. No investing in gold. No diverting our retirement into CDs or cash in the floorboards. No panic.