The state of the economy and where we go from here...
I'm more than a bit dismayed by the defeatism and pessimism displayed by many economic analysts and regular citizens in the wake of the WTC / Pentagon attacks. Yes, the U.S. economy has been stagnant for some time, yet a board of economists came out Monday stating the turnaround was on the horizon, possibly starting as early as Q4. Now in the wake of the disaster, the vultures are all crowing "recession." We have other people telling us to hunker down and "be afraid, more terror is coming." "Here come the bio-bombs! Here come the EMP bombs!"
The goals of a terrorist attacking the U.S.
1) Sow terror.
2) Shake confidence.
3) Damage national resolve.
4) Damage national economy.
Sounds to me as if many of our so-called financial "leaders" are ready to give the terrorists a victory on all fronts.
Is recession a danger? Yes... and it becomes an even greater one if the first thing financial analysts say is "doom, doom, doom." Financial analysts frequently don't analyze as much as they guide. "Analysis" becomes a self-fulfilling prophecy. If consumer confidence is the only thing holding up the U.S. economy, and the "analysts" throw more fuel on the fires of fear permeating the nation, then they're going to be right... because they pushed the economy in that direction.
Greenspan has "opened the discount window" for liquidity. That hasn't happened in a VERY long time (if memory serves, right after the 1987 crash). I think it's past due, since the NASDAQ has crashed at least as much over the last year. Apart from energy, inflation is well in check at this point. As inflation isn't a primary concern, the only way to get the economy to turn around is to infuse cash into the economy. Greenspan has taken the first step. We as a nation don't have the luxury of acting like prima donnas and "taking our ball and going home." We do that, we hurt ourselves and give the perpetrators of Tuesday's atrocity an even greater victory than they have already achieved. The best way that individual Americans can fight back against this unseen enemy today is to go out and live our lives as if nothing happened. Go to work... put in your full day... Go home... Go to the store... Make your planned purchases... Travel if you are able... Otherwise we WILL be in a recession. The economy WILL sputter. If that happens, then bin Laden would have only been the catalyst... not the cause. |
