November 3, 2008

IF YOU CAN'T LYNCH OSAMA, ELECT OBAMA?:

Irrational Pessimism (Brian Wesbury, 11.3.08, American Spectator)

Since 9/11, a pall of pessimism has covered the U.S. Polls show that between 60 and 85 percent of Americans have believed that the U.S. is in a recession or would go into one the following year. But from September 2001 through August 2008, those polls were wrong.

Nonetheless, the failure of Lehman Brothers, with its ripple affect on money market accounts and confidence in the U.S. banking system, finally made this prognostication a reality. The U.S. entered a real recession in September. Rather than a prolonged recession, however, or one that is worsening, we're seeing a temporary "V" shaped recession caused by a sharp, fear-driven slowdown in the turnover of money, or velocity.


The lingering angst since the WTC, combined with the near psychosis of Democrats since Florida 2000, has been a genuine drag on the Bush years. An Obama victory would almost be worthwhile if it were to snap us out of the funk, especially since so much of the economic malaise is just psychological. The problem is the disappointment of his supporters will hjust create a different sort of pall.

Posted by Orrin Judd at November 3, 2008 7:14 AM
blog comments powered by Disqus
« PENNSYLVANIA AVENUE FREEZE-OUT?: | Main | WHAT'S THE EASIEST INNOVATIVE REVOLUTION TO FORCE?: »