The Cost of Panic

Dec 2009 //
Optimism/Pessimism

We’d like to emphasize that the plunge in jobs and economic activity that began in late 2008 didn’t need to happen to satisfy the gods of economics.  Rather, the steep acceleration in job losses and the decline in stock prices were born of consumer and investor panic.  Although the panic helped CNBC ratings, it wreaked havoc on the economy, contributed to thousands of additional job losses, and cost many investors dearly.