The Fall and Rise of the American Economic System

I know it has been a tough time for many Americans and it is hard to watch your retirement accounts fall to record lows. There is one simple plan that could save us from a recession or even depression.

Unless you need money for living expenses you should simply keep up your investing. Don't panic! Quit worrying about losses in the market and continue to invest. Recently on Cramer's Mad Money an elderly lady called in to ask Mr. Cramer what she should do with the $95,000 she had just cashed out her retirement account for. He told her to put it into a money market or simple savings account. What should he have done? Perhaps he should have told her that she should have kept the money in the retirement account and wait out this storm. So why invest in a money market or savings account? They are extremely safe. Doesn't he make recommendations every day on what to buy? If he knows so much about investing then he should be able to pick daily winners, right? Wrong! He is a former hedge fund manager who has simply forgotten how to invest properly. He likes to short stocks and, like most of us, has lost thousands during this downturn.

Cramer, like President Bush, has confirmed people's fears by telling them this is worse than it appears. Simply put, Americans are being told to panic and told to cash out now while the getting is good and just take the losses. How absurd! If this huge sell-off continues we will surely settle into a long recession that may be nearly impossible to get out of. On the other hand, if all of us band together we can surely break out of this funk. Now ask yourself "What can I do to help and what can I do to make sure I have a fiscally sound future?"

1) Do not panic!

2) Do not cash out your investments for a loss!

3) Continue your investments because even if the price goes down, eventually it will rise if we all stick to our previous investment plans.

4) Quit buying so many material goods that depreciate in value!

5) Use a strategy when saving for your future. Buy some stocks and mutual funds but remember to put money into savings and a money market account!

6) Quit watching financial advisors on television. Many of them have lost a lot and the only way to get their profits back is to short investments while you are selling off.

7) Cut down on your overall spending. Find deals, cut coupons, and try to do more with less. Get out and watch the leaves change instead of sitting at home watching the news.

8) Vote! Your future depends on it. Tell the government exactly what you want from them and where you want America to go in the future! Even your local city council wants some guidance. Politicians are just that! They are not the smartest people in the world and they don't have all of the answers. We do!

9) Invest in everyone's future by investing in America! Continue to purchase mutual funds, stocks, bonds, etc. In order for stocks to rise we must purchase them.

Remember that Wall Street runs simply off of supply and demand. The more we invest will result in fewer shares available equaling a rise in value. It is as simple as that. It is our responsibility to ensure the future of our country and the only way we can ensure that future is to invest. Try and keep this in mind...pay your bills then pay yourself, and then invest what you can for your future. Cashing out for losses will just push us further down the hole. We can get through this only if we stick together and only if we start investing rather than divesting.