Monday, March 16, 2009

The stock market runs on rainbows and unicorn farts...

...so the Obama team needs to keep the rainbows shining and the unicorns farting. As much as I hate to link to ludicrously right-wing blogs, this guy has a point. So much of the economy (the DJIA, especially) runs on consumer confidence. Right now, even people who aren't in danger of losing their jobs, and aren't retiring soon are cutting back on spending. People who need a new car/tv/etc are waiting until the economy is "doing better" (what exactly is meant by that is up to debate) until they go out and buy one. As FDR would say, the thing to fear is fear itself. That fear is driving down consumer confidence, which is driving down consumer spending, and that can't be good for the economy. It's not surprising, then, that the Obama administration is starting to sound more like the Obama campaign. It no longer serves their purposes to continue talking about how dire things are. Now they need to make people feel like it is safe to spend and invest, if they want the economy to turn around.

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