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By Debbie Williams Reporter

M30o93H7pQ09L8X1t49cHY01Z5j4TT91fGfr Bumpy Stock Market Ride

Published: Tue, January 22, 2008 - 6:26 pm
Last Updated: Tue, January 22, 2008 - 8:07 pm

Debbie Williams

Investors and small business owners are trying to catch their breath after a wild ride on Wall Street. The Dow Jones fell more than 450 points at the opening bell but recovered to close down at 128 points.
Helped in part by an emergency three quarters of a percent cut in the federal fund rate by the federal reserve. Today's economic aerobics has some holding their breath and financial experts urging everyone not to panic.
In business for 61 years, Dixie Furniture in Foley has survived economic roller coasters before, but not like this says Ralph Young. "It's scary we've never seen this before prolonged it's been up and been down."
This morning it was down, way down. "We're probably on the front line of feeling a crunch, we're definitely feeling it," says Young.
While small businesses are still struggling to survive, financial advisers say don't panic just yet, things will get better.
"It's happened before we'll get through this and the economy will come out stronger on the other end." Fred Hayek is a security analyst. "This is an ordinary type of correction at the end of a long upward market cycle. And it's not the time to take an all-in or all-out approach."
He says President Bush's economic stimulus package to jump start the economy will also help. "If it's 600, 800 or a thousand dollars its really going to ..All it's going to do is take the money that was taken out by rising gas prices since mid-year it's going to put that back in so I think it's helpful."
Ralph Young is still uncertain, "That did seem to help a few years when we did it when the government did it I think we're a little further in the hole."
That hole may already be too deep for the family business that may have to call it quits if the economy doesn't make a comeback.
Following the feds lead, commercial banks also dropped their prime lending rate three quarters of a percent. The interest rate for most business and consumer loans now sits at six and a half percent.

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