Stop the Bloodletting, Fear no Fear

Wall Street and world markets did not get too cozy with the 700 billion bailout plan. The world has entered into a panic attack, as if the sky is falling any minute.

The fearful, or shrewd, decide to unload their stocks and stash away the cash until future recovery from the panic attack. Assuming no more short selling is permitted in this downright bearish market, few stockholders stand to gain anything, except earlier short sellers who are trying to buy back the borrowed shares and those who have plenty of cash on hand to buy values stocks in their new lows.

Even though I am not running for President of any country or club, but as a good world citizen, I must advise the panicking fellow citizens not to lose heart. Do not join the frenzy of dumping your shares. That will only exacerbate the irrational exuberance on the market and drive down the price more steeply.

I want to go one step further to call on the governments to immediately stop the bloodletting on the market by shutting down all trades until further notice, when people will have regained their mental sure footing.

The sub-prime mortgage debacle due to unshackled Wall Street greed has set off this unfortunate episode of economic downturn. The mere intensifying fear of common stockholders will only add fuel to fire, insult to injury, making the bad worse.

First is the Wall Street greed, now comes the Main Street fear. Greed and fear are twins that will do us in. Someone has said it well, the only fear that we need to fear is the fear itself. So fear no fear.

I am reading Daniel Coleman's classic book on "Emotional Intelligence". It is evident that panic selling is an emotionally unintelligent, knee-jerk reaction in this gloomy market. We must put a cork to the bubbling foam of fear. The government must stop the bloodletting.