What Happened?

Huh?  When I left the country on September 22, the Dow Jones was at 11,300.  When I returned on Friday, it had dropped 1,000 points.  Today it drops another 800 points then recovers most of that loss, closing at almost 10,000.

Seriously, the US market is covered on the daily news in Ireland so none of this was a big surprise.  The banking bailout is big news over there, especially since the Irish government is taking similar steps.  In fact, they voted a similar bill before the United States did.  Their equivalent of our Congress passed the bill and the President signed it in one day as the debate in the United States went on for several days.

Frankly I’m glad that I don’t have to analyze financial markets for a living because what’s happening today seems to defy explanation.  Oil prices fell today to below $88 a barrel.  Surely that means that prices at the pump will drop accordingly.  (Ya think?)  The dollar is up against the Euro today but down against the yen.  It’s clear that we have some issues, but that the situation today is unlike anything that’s happened in the past.  That’s why the "experts" have no more idea what’s going to happen than you and I do.

But there’s one thing that strikes me.  There’s been enough bad news in the last few weeks to really drive our economy into the tank, yet the markets continue to fluctuate, just like today, when the market dropped dramatically early and then came back late in the day.  There seems to be enough underlying strength in the economy to keep it bouncing back no matter how bad the news.

Can this keep up?  I don’t think anyone knows for sure.  But here’s a good article on what’s happened to Wall Street recently that might shed some light on things for you.  Meanwhile, here at MYOB, we’ll continue to look for ways to help you get more out of your business and to weather the storm.  Because there’s still business to be had and there doesn’t seem to be a reason for us to curl up under our desks and wait for the sky to fall. 

Let us know what you think by commenting below.

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