1) Should I take all my money out of the bank and put it under my mattress? Probably not. Especially if you smoke in bed and/or have a lot of candles in your bedroom (rimshot!) But really, all money you put in a bank is ensured up to $100,000. Somehow I doubt any of you guys have more money than that. If you do though, you probably should take out the excess and put it somewhere safer. Like, for example, under my mattress.
2) Are we entering another Great Depression? Too soon to tell, but most signs point to no. This does a good job explaining how much worse shape the overall economy was in the early 1930s than it is now. To sum it up: The Crash of ’29 brought the stock market down like 17 percent, this last dive only took it down 7 percent. Plus, the entire economy contracted 46 percent (!) in the early 1930s. Our economy is still growing right now. Of course Campbell Soup was the only stock to make money on Monday, and nothing says disaster like people stocking up on canned goods, so never say never.
4) Isn’t it true that the only thing that really got us out of The Great Depression was World War II? Not entirely. But I’d still watch your back, Germany.
5) Why are we still talking about the Great Depression? Didn’t you just say we’re NOT entering another Great Depression. Yes, good point. Let’s get back on track here people!
8) I’m glad the bailout failed. Who wants to help a bunch of Wall Street fat cats? I mean, am I right or am I right? You’re wrong. The idea of forking over money to Wall Street is unappealing to be sure, but the money's actually being borrowed from taxpayers, not taken. And some of the most conservative, pro-free market economic thinkers I know all say it's necessary to prevent this crisis from getting worse. One of the biggest problems right now is that the credit markets are frozen: No one is lending money. This is an issue because a lot of companies need credit just to make payroll. Our economy, for better or worse, is based on credit these days. With credit frozen, everything freezes. This is a bad thing. Most people agree that the $700 billion bailout would loosen up the credit markets.