Doing a quick canvas of people and asking how the recent "market corrections" were affecting them, most indicated they had a variety of assets including personal savings, retirement plans and real property.
While not a scientifically statistical sampling, these conversations indicated that most shared some common traits:
Had focused on reducing or eliminating debt over the past two years
Felt their wages were flat during last two years as any increases were offset by additional insurance, food and energy/fuel costs
Had seen cost-cutting measures and/or budget reductions continue at their place of employment and were personally assuming more job accountabilities (whether working for themselves or a company)
Had tapped into personal savings for an unanticipated expense within the past two years
Had seen regular contributions to private retirement plans (401(k) or IRA) take losses averaging a minimum of 10% up to a maximum of 35% over the past twelve months
Believed problems that began surfacing in 2006 in the housing market were a) affecting the market value of their own home, or would result in increased rental rates and b) caused a drag on other areas of the economy
All of these items can create stress in an individual, be it mental, physical or economic. Collectively, this stress can affect entire communities while significantly decreasing tax revenues necessary for government services, be they local, state or national.
The "market correction" of 2001 was not as deep or long as it could have been, and many American's just had only a little "hitch" in their step due to the many safety precautions put in place after the Great Depression. It is now appearing, however, more and more of these precautions have been modified or made toothless while allowing very bad business practices that affect not only Main Street, but international financial markets and investment. We may not have common language, politics or laws -- but economics do bind the globe today.
If our President's brief appearance on national television last night was meant to calm and assure us, it didn't work personally. If it was meant to justify a pause in the Presidential campaign and debates, it was unconvincing. What's calming about being told all taxpayers may be burdened with $700 Billion in new debt? What's encouraging in being told "American's need access to credit" so individuals simultaneously assume more personal debt, too?
As we collectively hold our breath during the "market corrections" witnessed this week and over the past 45 days, here's wishing you and your loved ones continued financial security, and with it good mental and physical health.