The Next Great Depression?

By Diana Lucio Reporter

Could the economy collapse again? Wondering what the Wall Street crisis means for you? Experts say it may not be what some of you are thinking. The Next Great Depression?

Published: Fri, September 19, 2008 - 5:22 pm Last Updated: Fri, September 19, 2008 - 5:39 pm

Diana Lucio

While the White House is worried about the Nation's financial well being, many of our viewers are worried about how this crisis affects them.
Financial consultant Larry Nichols says the lesson to be learned with Wall Street is to focus on long term investing.
He says by diversifying your investments you decrease your chances of taking a hit when the market drops like it did this past week.
But Nichols says the biggest mistake anyone can make right now is to panic and pull out all of your money. "They should be looking at something long term in nature and those funds should not be pulled down accessed just because you have a temporary fluctuation in the market," Said Nichols.
Experts say with safeguards in place like the FDIC that will insure your money up to $100,000 people don't have to worry about experiencing another Great Depression, when those safety nets didn't exist. Here are some tips to help you weather the financial storm. First, talk to an investment professional before making any haste decisions. Second, focus on long term investing, and experts say right now while the market is down, is a good time to invest. Last, but not least, Nichols tells us you should always keep a three month's worth reserve for times like this.