Speaking with my wife today about the state of the economy and all that is happening with the bailout, credit crisis and the war. She sees the Wall Street Journal open on the table every morning and hears my grumbling every time there is a headline on the front page declaring the end of the financial world is upon us. Today, she told me that she would appreciate it if I stopped reading the newspaper, watching CNN or reading blogs. Some people are of the belief that the economy is a group-think phenomenon and that we can all will ourselves out of crisis and work together to make it better. To a degree they are correct. Wall Street is very much a psychological animal where a piece of news can have the sentiment of the street move in one direction or another.
If we believe what we read and hear, we are upon the next Great Depression, that we will spiral into despair and all of us will be standing in bread lines. I have to say it is hard not to freak out a little and watch your spending even on essentials, just in case something does happen. The fact remains that 94% of us are gainfully employed and are working hard to make ends meet. Yes, that number is higher than it was in the recent past - but I believe we are a resilient, intelligent society and will find a way out of this mess.
Will anyone be surprised by the upcoming holiday spending decline? Will anyone be shocked when retailers report smaller than expected gains on holiday spending?
Until the media straightens out, maybe I will get my news from happynews.com










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