Don't Panic

With the stock market dropping, like a rock over (more then 800 points) the last three days, some are prone to panic. As we seen in the classic movie, It's a Wonderful Life, it was the two people (financial institutions) that didn't panic, that survived the bank rush of the the 20's. Now we are seeing banks that survived the Great Depression crumble and being bought out.

The news is concerning for many Americans, but Washburn University economics professor Dmitri Nizovtsev says the worst thing to do is stop spending money.

"That would be the worst thing because that's when the economy collapses," Nizovtsev said.

The stock market is based heavily on consumer confidence.
- KTKA-TV49

Nizovtsev explained, that if we as ordinary people stop spending money, we could be in for even more bad days.

"Many bad things in the economy in the past were caused by people, regular people, overreacting."
- KTKA-TV49

As you seen in the movie clip above, the people that panicked were the ones that lost everything, while people like (the fictional) George Baily, who kept their head, even when it looked bleak came out on top.

It's the same thing that happened in the housing market. Still, in the wake of all this alarming news of bailouts and bad stocks, what should you do?

"As silly as it sounds, I'd say nothing different from what they were doing," Nizovtsev said. "I think people should keep going with their lives, keep living their lives the way they did before this alarming news."

Nizovtsez says ups and downs in the economy are cyclical and he does expect the economy to rebound and actually get bigger. Of course, that will only happen if people don't panic.
- KTKA-TV49

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