It’s been a busy week on the economic front. Congress got its act together, sort of, and passed a debt ceiling raiser that a solid majority of Americans considered “ridiculous”. The Dow Jones Industrial Average dropped 500 points in response to this, a new salvo in the currency war, and uncertainly about jobs. Today it may gain some of that back now that the July jobs report shows solid gains, however.
If stock traders and reporters alike seem to be hopping around like scared bunnies, there’s a reason for it – uncertainty induced fear. If you are afraid for your own future, you’re clearly not alone.
That may sound like small comfort, but it shouldn’t be. Confronting our fears will be the first step to recovery. You can read that as either pop psychology or economics. The source of the fear, however, will take us some time to work out because it’s a major feature of the world we live in.