As the Dow continues to decline, so to does the courage of some Michiana investors.
Today, the connection between Wall Street and Main Street was crystal clear---and it was a connection that some stockholders tried to cut—by getting out of the market.
“I got out today,” said Dr. Michael Sheehan of South Bend. “I got out, although I don’t have that much to lose thank god.”
Sheehan is a psychologist who says he couldn’t take the turmoil. “We’re way too involved in money in our culture anyways,” he said. “if there’s any one thing this whole tragedy shows us is that we’re so consumed by money, that we let it effect our day to day lives.”
For some, the dropping Dow reminded them of days gone by. “Well, I think we’re seeing a repeat of 1929,” said Bill Eagan of South Bend.
Eagan was alive during the last depression. He said he wanted to get out of the market now, but feared he was already too late. “It’s the wrong time to do it,” he said. “That’s the trouble at my age.”
Not everyone is so pessimistic about the ways of Wall Street.
“I’m not worried, I am paying attention you know,” said Jane Plank of South Bend. “You know it’s all going to pan out eventually.”
Plank said she was glad to have her health, and that in ten years, she fully expected to recover all the money she lost in the market.
While Wall Street greed and the mortgage crisis arguably played a role in the Dow’s latest slide, perhaps Main Street ‘grief’ or fear—itself is now helping to fuel the fire.
“We see that in the last few days the markets have been particularly pessimistic,” said University of Notre Dame Professor of Finance, Richard Mendenhall. “We've seen big drops close to the close that's probably because people have made withdrawals from mutual funds. Certainly there's data that suggests that. That means individuals are being very pessimistic and its the Main Street now, that' s driving the values on Wall Street.
Mendenhall said he was prepared to stay in the market.