FREE ADVISE: If you have money in a 401k or IRA, don't take your money out now! You will be taxed on what you withdraw with penalties and fees tacked onto the taxes at a much higher income level.
Stay calm and collected; this too will pass. It's a paper loss until you sell.
Not looking good, is it? The DOW is now down 35%, Nasdaq and the S&P are both down 38%. OUCH! Double OUCH!
Well, my wife's funds are now down 12.2%, and mine are down 19.9%. It's going to open lower tomorrow morning, but don't panic.
Here's why: The feds are now working to provide liquidity to the markets, but it will take a month or two before that beings to stabalize jobs and sales.
But, we must not lose sight of the simple fact that the sub-prime mortgage problem does not affect the majority of mortgages - yet. In order to make sure this doesn't become a real problem, we must continue to have faith in our economic system, and keep our money invested in the banks, financial institutions and stock market. This is the only way liquidity works. Without liquidity, businesses that need loans to make payroll and buy their raw materials disappear. Consumers who have the income and can afford to buy a new car or refrigerator can't buy for lack of credit. This fear of losing everything is a self-perpetuating problem when we stop having faith in the strengths of our economy.