2007-08-16 08:09:19 · 5 answers · asked by latricerobinson3000 2 in Business & Finance ➔ Investing
It lets a lot of fear out of it so it can begin to repair the damage.
2007-08-16 08:39:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Investors lose money on paper. They only make actual losses if they sell their positions.
If they wait long enough, the value will return to (most) stocks, and they'll just not have made a huge gain during that period.
Some companies though are vulnerable to problems with liquidity - they may go bankrupt. And because liquidity is low, borrowing money becomes more expensive, so mortgages and other credit will go up in price.
2007-08-16 08:18:22 · answer #2 · answered by Anonymous · 0⤊ 1⤋
the sun will appear to rise in the east tomorrow as usual.
there will be a gloriously beautiful sunset in some places tonight, as you'd expect.
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Tomorrow, the same 95.4% of working Americans will go to their jobs as went last week. Overwhelmingly, they'll be the same individuals and the same jobs, too.
There'll be paychecks tomorrow for most hourly workers, as usual.
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And some politicians will moan and cry out that average workers can't take any more of this, so the Federal Reserve should step up and end it.
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Humans did not design the Universe and we aren't running it.
As one sage implied nearly 2100 years ago, it is wise to focus on the eternal and let the temporary take care of itself in the usual fashion.
GL
2007-08-16 08:32:14 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋
The value of the dollar drops, thus internal prices rise, due to the fact it takes more dollars to buy imports which the U.S. is so famous for depending on.
2007-08-16 08:20:02 · answer #4 · answered by Anonymous · 0⤊ 1⤋
the value of businesses on the stock exchange have been reevaluated which is caused by supply and demand.
2007-08-16 08:15:31 · answer #5 · answered by snwbm 4 · 0⤊ 0⤋