The Ignorant Investor

From The New York Times.

WASHINGTON — The stock market plunged again on Thursday on bad economic news, taking little comfort from reassuring words by the chairman of the Federal Reserve or an emerging consensus about a stimulus plan that many worry could be too late.

On a day when stocks were pushed down another 3 percent on reports of more weakness in housing and manufacturing — bringing the decline this year to a stomach-churning 9 percent — all the major players in Washington agreed on the need for putting extra money into people’s hands quickly.

Signs of panic in Washington. When the dogs and cats start talking about living together, mass hysteria can't be far behind.
Even though there is talk of a slowdown, here in my town I have not seen evidence of it in falling prices or less activity at the local stores so far. I don't hear anyone complaining about job losses or tragic stories of people being put out on the street. If we're slowing down, it's from a fever pitch to something approaching a normal economy.