Thursday, October 9, 2008

Another Day, Another Dollar Lost

I'm beginning to wonder why I read the paper every morning. The fact that there's no good news is both cliche and, well, a fact. I suppose I read the paper because it's hard to believe just how bad things have gotten and I need a daily reminder of all the bad news. Six months ago my main worry was the price of grain, while these days I worry that we'll all end up in one bread line or another.

I no longer open my monthly statements sent from the places that are tending to my net worth. I don't know if I have any net worth anymore, come to think of it. I'm no economist, but I do know that something is "worth" only the amount someone will give you for it. It doesn't matter what my car is worth on paper; if someone will give me $20K that's what it's worth, and if I can only get $9K for it, then that's its value.

So, if investors are scared of the market and are selling, rather than buying, stocks, what are my stocks worth? What happens, in other words, if we get to the point where no one wants to buy my holdings? Do they then become worthless? Can the Dow reach zero? If nothing is "worth" anything, what happens? These are honest questions. I hope to never have practical answers to them, but every day the paper makes me worry just a little bit more.

1 comment:

J. SPIKE ROGAN said...

If you don't read the REAL newspapers everyday, and instead just get your news from Cable TV and AM radio. You will end up like these charter members of MENSA