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Should Monday's Meltdown Be Reason To Panic?

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Sep 15, 2008 6:52 pm US/Eastern

Should Monday's Meltdown Be Reason To Panic?

Experts Say Things Will Pick Back Up...Eventually

Reporting
Kirstin Cole
NEW YORK (CBS) ― Wall Street woes are hitting more than just traders on the street. The average New Yorker is finding the constant drum beat of financial blues creeping into their lives, with many wondering if it's time to panic.

CBS 2 asked a few city residents how they felt after Monday's meltdown, and the general feeling wasn't one of optimism.

"It's a huge, huge loss and it's startling," one resident said.

"I'm not feeling very strong with banks closing," added another.

New Yorkers watched as some of the 25,000 soon-to-be laid off Lehman employees cleared out their desks after a bankruptcy was announced at the storied brokerage hous, and are worried we're facing a more far reaching economic crisis.

"Psychologically, we are a little bit fragile right now," said Geri Detweiler, a consumer advocate with Credit.com.

But experts say while this is certainly a tough time for the economy, things won't hit rock bottom.

"New York will still be a major financial center. This is not going to be the great depression all over again," said Professor Lawrence White of NYU Stern Business School.

Those who study the market say this is all part of the cycle of business, but there are practical things you can do now to protect yourself in case of a merger or bankruptcy.

"Keep good records," said Detweiler. "So for example, if you have payments for bills that are auto-deducted out of your bank account you want to make sure you can get in touch with those providers and get the bills paid."

And there are also predictions this won't last much longer.

"My hope is that by the early part of next year, spring or maybe summer of 2009, things have stabilized," said White.

In other words, experts day, don't overreact!

"There are ups and downs, but this will come up again," said Detweiler.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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