“You Must Be Optimistic”

This morning, while watching ‘Face the Nation’, I was struck, not by the interview with the sitting Vice President, but by the two commercials that were for Charles Schwab, a Wall Street investment firm.

It was easy enough to see that the interview was going to be another attempt to revise history, so no new territory was covered. The one high point was to see that apparently Mr. Cheney has at least a modicum of respect for Bob Schieffer, and at no time came into verbal wrangling or assaults on the moderator.

During the commercial breaks, both times an ad for the Schwab firm was featured. My mind immediately went to the many words I’ve read, in the past 3 months, concerning the stock market. Only recently, many are wondering, in print, if the stock market, in its present form, should continue. Many see the market as nothing more than legalized gambling, and a machine that lately, has about the same odds of winning as those found with one arm in Las Vegas. This market bears little resemblance to the system of investment that many learned about in school.

The problem is the title of this piece. If wealth is dictated by perception, we are all in great trouble indeed. The stock market plunge was caused by perception, and now, seven trillion dollars in wealth was lost by the investors in this country. That this much perceived wealth could evaporate so quickly is a problem. Should not the value of stocks be based upon something less ethereal than good feelings? The Schwab ads twice exhorted us to be optimistic, in the manner of a father, who wishes to put the best face on an uncertain future.

Optimism is great, but as the saying goes “Wish in one hand, … “

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Jealous: Unduly concerned about the preservation of that which can be lost only if not worth keeping.Ambrose Bierce