Liquidity Problem

by Investing School on December 12, 2008

My friend called me up today and told me that he believes he knows what’s happening with all this financial crisis.  The conversation went something like this.

Bill: The market sure is going crazy these days.
David: I know. Many people I know have no idea what’s happening and everyone’s scared!
Bill: I think I have the explanation of this financial crisis though.
David: Oh… What is it?
Bill: I think we have a liquidity problem.
David: That’s what I hear too!
Bill: Definitely. I wet my pants every time the market goes down further!

Your stock portfolio isn’t as bad as Bill’s right? Have a great weekend!

Promote or Save This Article

If you like this article, please consider bookmarking or helping us promote it!

Print It | Email This | | Stumble it! | Reddit |

Related Posts

{ 6 comments… read them below or add one }

Sandy December 12, 2008 at 11:42 am

Another good one! Thanks for the laugh and inspiration at the same time! Seriously though, I think the fact that banks aren’t lending is a very bad sign because even they are afraid that there will be more write downs so they are taking precautions.


MoneyNing December 13, 2008 at 8:21 am

Sandy: I’m glad you liked it! It was funny for sure and hopefully this brings some light to everyone that the lost they’ve incurred already isn’t so bad!


Trevor December 13, 2008 at 9:01 am

Well… seeing that I’m 24 years old, I’ve got plenty of time to recover from this whole thing. But still… last July I invested about 13k into the market… I’m sitting here with about 7k. 🙁 It still sucks anyway you look at it.


MoneyNing December 13, 2008 at 9:19 am

Trevor: I know what you mean but it’s all relative! I accompanied someone to a dinner event hosted by the Wells Fargo management group and one of the people participating told the group that he’s lost $800k in the market recently.

You are still young and your lost will be recouped really soon I’m sure as your salary and savings/investments will grow much more than the $13k you put in.

Stay the course and have faith in how the system works and don’t sell when it hurts the most.


Ryan December 13, 2008 at 11:27 am

I agree with MoneyNing on that for sure! Most people lost so much more money than Trevor so relatively speaking, it’s not too bad. You are young and have tons of time to make it up. Keep investing!


Bill M December 14, 2008 at 7:01 am

I am down about 37% as of the close on friday which isnt bad, at one point I was down 53%. Happy Investing…


Leave a Comment

Previous post:

Next post: