Economic DownFall

The Dow Jones Industrial Average closed yesterday at just above 8,500. If it drops another 1,500 points then it will have dropped 50% From October 9th, 2007(which by the way, is the highest it had ever reached at 14,164). People say this is a sign of Economic collapse or at least a recession. And in response the US government has begun a series of operations meant to "Bail" us out of this economic slump. I will tell you right now there is no such thing as a quick fix and all the government can do is lesson the blow. recession is coming people and looks like we're just along for the ride,
Note that I said recession not depression or "god forbid" a crash I'm not saying that those things aren't possibilities but I feel that as long as people don't loose faith in the market they can be avoided. When people loose faith they not only does that confirm your loss but it also weaken the market its self. Truth is I would encourage people to invest.
Yes, I know what your saying, "invest, You must be crazy" and my answer is maybe, but that's beside the point. I'm not saying take you life savings and invest in Wachovia. All I'm saying is if you have the money then maybe place it into a mutual fund of some kind because through investing through a mutual fund you diversify you assets this means that even though there is a risk of failure the possibility that all your investments will fall through is incredibly small, and due to the current economic situation your money will go farther than it would have gone 6 months ago.
The other thing people fail to see it that the stock market is cyclical in nature. What I mean by that is every recession is followed by a period of market growth always has been always will be. If you look at the Graph below you'll notice that the economy is on an upward path and if you're willing to wait your patience will be rewarded. All I'm saying is that if people would show some foresight then they would realize that the market will recover and they still have the possibility to reap the profits they imagined when they first delved into the stock market. If people us foresight and maintain a clear head they should be able to avoid their Economic Downfall.

P.S. Please comment this is my first blog and I'd love to know what you think. Thank you