Opinion

Our Opinion: Financial follies troublesome, but could be worse

Unless you’ve been living under a rock for the past few months, you can tell that the economy, both domestic and abroad, has been shaky at best. The prices of fuel and food have risen. Houses across the country are being foreclosed on after those silly sub-prime loans. Now, investment banks whose names were good as gold just years ago are mere memories. Lehman Brothers and Merrill Lynch, bankrupt and bought out in just one week, respectively.

Sounds pretty bleak, right? Well, it depends on your perspective. If you’re an investment banker, or someone heavily involved in the stock market, then absolutely, you’re crawled up in a fetal position right now. But for most college students, the only investment they’re making is for the keg this weekend.

Sure, food and fuel prices are up, but those prices fluctuate through the years. Ask your parents about gas lines in the 1970s, and think about who actually had it worse.

So what is the problem? The problem is the mix of the three is really souring how people feel. There are even people who are contemplating withdrawing their money from banks until the crisis dies down. The irony is, that’s the worst thing to do. Burying your money in the backyard takes it out of the economy, and gives you negative interest (also known as inflation).

So what should you do? In short, don’t panic. The era of the never-ending expansion has gone away, and in its place must be a renewed commitment to careful judgement. Cut back on spending a little bit to adjust to current price levels. Write your congressman to encourage better monitoring of the markets in the future. As the old saying goes, “an ounce of prevention is worth a pound of cure.”

September 22, 2008

Reporters

Editorial Board

The Miami Hurricane


Around the Web
  • Miami Herald
  • UM News
  • HurricaneSports

UM offensive coordinator Dan Enos on Monday addressed the quarterback situation in this piece, culle ...

University of Florida big man Keith Stone, a 6-8 and 254-pound Deerfield Beach native, is heading cl ...

The Miami Hurricanes are primed to have another nice weekend in the NFL Draft, at least according to ...

UM offensive coordinator Dan Enos already has displayed a penchant for giving thoughtful, substantiv ...

And you thought the quarterback race was hot before. After reviewing the University of Miami spring ...

Yvette Soler, B.M. ’96, better known as Tigrilla Gardenia, connects her music engineering background ...

Preservation Week, from April 21 to April 27, is focused on highlighting the importance of learning ...

There are numerous ways to connect with the University of Miami during the two-day tech conference o ...

A symbol of both French heritage and Catholicism, Paris’ 850-year-old gothic cathedral was gutted by ...

The Division of Student Affairs hosted a reception to present campus-wide awards and scholarships to ...

The Canes are ranked for the second consecutive week, cracking the top 25 in two different polls rel ...

Nearly 10,000 fans got a glimpse of things to come at Camping World Stadium ...

Joe Zagacki and Don Bailey, Jr. have been selected to receive the University of Miami Sports Hall of ...

Miami Athletics has become one of the leaders nationally in developing its sports psychology departm ...

Images from the University of Miami women's tennis team's run to the ACC Championship semi ...

TMH Twitter
About TMH

The Miami Hurricane is the student newspaper of the University of Miami in Coral Gables, Fla. The newspaper is edited and produced by undergraduate students at UM and is published weekly in print on Tuesdays during the regular academic year.