Stock Trading and Other Things

What does stock market plunging over 500 points mean for average ppl?

will it affect the average people who have saving in the bank?
at what point does the stock market crush? 1000 point?
should I get my saving from the bank or invest it in gold or something else, I don't want it to be worthless if the stock market crushes.

Public Comments

1. The us rating downgrade will probably raise interest rates a bit...so actually you'll be getting a better rate in your savings account!
In the stock market crash of 2009, the low was somewhere around 6500...and we're at 10,800 right now. I guess "crash" is relative..
Now is NOT a good time to sell. The market has dropped 10% in the past month. By selling you are realizing those huge losses. Selling stocks and buying gold is selling at a low and buying at a high (gold is at a record high right now)--not smart!
Don't panic, it's highly unlikley that the world is ending. The market will come back. Remember that the smart investors are always doing the opposite of the crowd.

2. if its cash you wont loose a dime if the market crashes but gold might be a good idea this is only the beginning of the stock free fall and gold and silver will only get more expencive as more and more people take more money out of the market but sooner or later it will peak and come back down but wont be for a while i would just leave it as cash for now i sold off all my stock 2 weeks ago and saved myself thousands and just have cash but when the dow gets to 5000 like it did in 2008 i will put my money back in to the market bank of america went down 20% today the banks will never fail but if they get low enough you wight want to just invest in to the banks wait it out and then put it in when it hits under 5000 again and sell when it recovers and you will make thousands of $

3. Crashing in the market don't affect you if you don't own stock. Simple as that.

Now, what does it mean for the economy in general? Basically the markets are telling us that they see dark times ahead.

As for moving your cash in to gold, there's no real need to do that. Your cash will always be there. The only reason you'd want to move it in to gold is if you think that we are heading for inflation, which means the price of gold will go up (so if you buy gold, and it goes, when you exchange it back to dollars you'll have more dollars).

But there's no guarantee gold will go up.

So no need to panic if you don't own stock, you can just ignore all this insanity.

4. Whether you know it or not, you very likely have an interest in stocks. If you don't own them directly you may own them through a pension fund or 401(k), Or if you have an cash value insurance policy some of that will be invested in stocks.
Bottom line, whatever stock interest you had last Thursday is probably worth about 10% less this afternoon.

5. For an average person like me, it is as bad as before.It won't affect your deposit because your deposit rate is at the bottom already.If it crash,it will let you know.It needs more than 1000 point,because we have had 1000 points already.And today is just Monday. People and central banks buy gold. But the gold price can go down too. How much money are we talking about?