How Long Is Long Term ??

AIG
Bankruptcy, Bailout
Crisis, CDO , Credit Crunch,
Debt
Economy,
Foreclosure, Fannie Mae, Freddie Mac,
Greenspan,
Hedge Funds, Home loans
Interest rates
Job cuts ....
K...
Lehman
Mortgages
NINA (No Income, No Assets)

Well this is some of the 'sub-prime' lingo that you must be hearing repeatedly for the last few days. I think kids should start learning alphabets in the above way. I guess this is a good way to make people 'financial literates' so that they can manage their finances better. I heard of the great depression, tech. bubble etc. but i hardly know anything about them- Courtesy no one cares to teach about 'money' in school or college or even at home. I never thought i will experience/see a world-wide financial recession/crisis in my life, but it seems like one is already here. Forget companies, Countries are declaring bankruptcies ..

So what should people do when they lose 30-50% of their portfolios in a week? I don't know, all i heard is 'stay patient' and 'stay long'. What is the meaning of this 'long'? In 2006 as per Indian market observers, 6-9 months is a long-term investment. By 2007 they started telling 2-3 years and now 'long term' is minimum 7 years. So how long is 'long' ? :)

Who are responsible for this mess? People who cannot afford, but still took loans or the dudes who gave loans irresponsibly or the American politicians who pushed the banks to help people in realizing 'The Great American Dream' of owning a house. Who Cares Now? At this time i can only reaffirm what my mother always tell me -- 'Live Within Your Means'.

P.S: As per wiki, 'sub-prime' is an euphemism given by the wall-street for 'junk'. This single sentence can explain the whole story.