Wall Street plunge sparks LIers' fears
Traders work the floor of the NYSE as the Dow was off more than 600 points at the closing bell. (Aug. 8, 2011) Credit: Craig Ruttle
Another stock plunge on Wall Street Monday caused economic fears to spike on Long Island, where residents have endured three years of recession and a slack economic recovery.
"My concern is whether it's going to drop more," said Sarvesh Rawat of Hauppauge. "I'm going to find a more reliable investment as soon as possible."
Rawat, 35, who works in software, said he's thinking gold may be a better bet than the stock market.
In more than a dozen interviews in Nassau and Suffolk counties, Long Islanders -- who've seen a weeks-long market slide capped by a 634.76-point drop in the Dow Monday -- expressed similar worries about the decline and what's next.
Gary Knacke, 60, of Lynbrook, a government employee, figures his 401(k) account has taken a hard hit, though he hasn't seen his statement yet. He's thankful he also has a pension as a retirement safety net.
"There's not much we can do, we just have to ride it out," he said.
Retiree Irene Ullo of Floral Park has most of her money in bonds. But she doesn't like the uncertainty.
"It's very depressing," said Ullo, 75. "We don't know what's going to happen, even tomorrow, and that's unusual."
Troy Mitchell, 43, of West Hempstead, is living on unemployment benefits and said he's worried about what the market drop means for his daughter, who has two loans to pay for college. He's advising her to watch her money, and is doing likewise.
"My car needs tires, but I have to hold off on that until everything else is OK," Mitchell said. "But that puts my safety at risk when I drive. I didn't used to have to worry about that."
Some blamed the federal government, saying the protracted bickering in Washington over raising the nation's debt ceiling spooked markets and led to a loss of confidence.
"Our problem really stems from people not being able to compromise in government," said Aronda Xystris, 66, a retired teacher who lives in Huntington. "We are not being served . . . it's a mess."
Pete Mandler, 51, an attorney who lives in Smithtown, said he's been in touch with his broker, seeking to shift his investments and stop losses, but he's made no moves.
He said the contentious debate in Washington means the federal government's checks and balances are operating as designed.
"The process, I think, is working the way it's supposed to work," said Mandler. "That doesn't mean it's supposed to produce a favorable outcome."
