If the stock market crash today doesn't affect anyone really, then why is it such a big deal in the media?

Question

See my other question here:
http://answers.yahoo.com/question/index?qid=20070227193520AAKYTGx

Thanks!

Answer 1

I skipped your "other questions here" spot and wanted to answer your question, I saw part of CNN when I got home tonite and saw how they lost 150 points in a minute, or hour, or something like that and the computer software couldn't even keep up with it all. Wow.

I never heard if it was as bad as the 30's or 2001, but, yes, my son has to watch spongebob before he goes to bed, so we watched that instead

I am glad I don't have stock as my retirement plan or do that for a living. The media likes to blow up whatever is going on and making it the "huge story." Even if it is picking on the president or military people. They especially like picking on Christians and being "unbiased" about their reports on them.

Media is media, they have to get certain amount of quotas from advertisers a week who want certain stories on the air and the more dramatic, the more response to the advertisers product. Simple marketing, basic approach.

Answer 2

Most people are impacted in some way by the stock market fluctuations (if you participate in a 401k account, have an IRA, or any other number of investment vehicles you'll be impacted to some degree.)

However, in truth, most of us don't actually LOSE any money. We lose money on paper (on the statements of our investments as they lose value.) Still, you don't actually realize a loss until such time as you sell your stock.

That's why you invest for the long haul. (There will always be market fluctuations, after all.) And that's also why the individual investor has a more difficult time; they tend to see a drop and react, where someone with more understanding of how the market works would wait it out (as mutual fund managers and other financial investment professionals do.)

Answer 3

Unfortunately large one-day moves in the market always make the mainstream news, even if they are not indicative of longer trends. It's because they seem dramatic. But unless today's drop was the beginning of a bigger selloff, it really doesn't matter much. I believe it set the S&P 500 back somthing like 3 months or so.

I did see some news a few minutes ago that said Asia's markets opened down significantly for a second day, so maybe soemthing is afoot.

Answer 4

The market didn't "crash" first of all. Second of all, it does affect people--it affects everyone directly if they own stocks and indirectly if they consume goods, save money, or own real estate. Thirdly, it's a big deal in the media because a historical event happened today--the market dropped by more than it has since 9/11.

Answer 5

it may not physically affect anyone, but economically today it hurt plenty of people.... if you have a retirement account, it got smacked down today....it all depends on if you invest, if you do then today hurt everyone.....of course unless you bought today and the market goes up tomorrow... the media made it a big deal because the value of invested money took a huge dump today and many people are worth a lot less now than they were yesterday... hell bill gates lost $1.2 billion dollars today, but he will survive lol

Answer 6

You need to come out of your cave and do some reading. Over 50% of the people have some assets in the stock market.

Answer 7

It sells newspapers. It's also an excellent buying opportunity. Also, the people who actulaay doo the trading made out like bandits because of all the activity. They make their money per trade.

Answer 8

It's for investors to know what it going on with their stocks

Answer 9

They need something to scare you about every day. That's all they really do, if you look closer at it.

Answer 10

It would effect all of us, everyone would lose their investments and we would lose our jobs.