We’ve written ad nauseum about the insulation Wichita has from the national economic downturn, and in large part that’s accurate.
But I have to speak from observation – and from the grapevine here – about last week’s stock market crash. No names, because it accomplishes nothing. Just observations.
Some of Wichita’s most savvy investors – both real and self-annointed – were wandering around town last week with the glazed look of, shall we say, a panic-stricken journalist whose 401(k) was circling the drain. No names there, either, except to observe that it appears I’ll be working well into my 100s, courtesy of the housing crisis.
There need be no more stark local proof that the era of unchecked American financial hubris is over. When the city’s financial elite hits the panic button, there’s truly trouble in River City, folks.
5 Comments
That’s strange… the last two days have been my best selling days in the last six months.
A long term investor will remember the ‘86-87 down market. And who can forget the NASDAQ in March of 1999 before the fall. Check it out. We have had down markets before and we survived. Why is the press sounding the death knell now?
I haven’t seen an impact from the national meltdown yet. I do believe that the Boeing strike is the big problem near term. If Boeing stops accepting parts from Spirit, then Spirit will have no choice but to lay people off. Thousands of them.
This will have a profound negative impact across the board. Panic will be a good word to describe it.
Down markets, yes. The disappearance of liquidity from the credit markets, no. While I do think we haven’t been hit in Wichita, it’s hard for me to criticize the concern of any investor because these are uncharted waters.
It’s all paper….if you don’t sell you haven’t lost anything yet. Pity the poor souls who depend on the dividends for their livlihood. Most of the large investors have other sources of income….like golden parachutes!