When The Beating Stops

Stock investors and home “buyers” are taking a beating. This, of course, raises anxiety levels and we start hearing that this is the greatest financial disaster since the Great Depression. If you’re inflicted by this anxiety, might I suggest that you look at the numbers – things aren’t that bad on mythical Main Street. It’s still debatable whether or not we’re entering a recession. What we are seeing is the market doing it’s normal thing – rewarding prudence and punishing stupidity. Things look bad because we’ve had a surplus of stupidity. But the time will come when the beating stops.

Of course, we could choose policies that would make it really really bad. That seems to be Senator Obama’s plan, and it is a great cause of concern. He’s likely to be the next President and, with a Democratic Congress, we could go over the edge. But I have hope: Obama’s a smart man and he might come to different conclusions once reality bites him. It happened with Bill Clinton, who was also a smart man with bad ideas.

There’s no point in worrying about these things: you can’t change them. But what you can do is get ready for the day when the beating stops. It’s coming.


One response to this post.

  1. Debatable that its a recession? By what measure?

    Its not debatable at all if you look at the metrics that the NBER uses — they are the group that officialyl date recessions.

    It aint debatable if you look at the data.


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