My article talked about the “perfect storm” in terms of what the auto-industry was experiencing in the credit markets, but that is probably more apropos of what is going on in the economy as a whole.  Housing is suffering, retail, including auto, is suffering, and jobs are being eliminated at an alarming rate.  Most troubling – these are not short term problems and even with a new president these aren’t going to be resolved over night.

First a little history, the phrase “perfect storm” originated with the 1997 book The Perfect Storm, and was cemented into most minds by the 2000 movie of the same title which starred George Clooney.  The phrase the perfect storm refers to the simultaneous occurence of events which, taken individually, would be far less powerful than the resulting combination of events.  Such occurrences are rare by their very nature, and any slight change in any one event would potentially lessen its overall impact.

Bernanke Tries to Decide What Next

The stock market volatile – imagine my surprise – but a recently headlined article on Marketwatch.com reminds us that consumers think it’s going to get worse.  Of course consumers think it’s going to get worse – the media keeps telling us it is going to get worse.  Even good news is buffered by some footnote as to why this is an exception to the bad that’s yet to come.  And if the media tells enough people, and talks about it long enough, eventually the American public begins to believe.  After all, if it can work for presidential candidates like John McCain…

So is the economy bad?  Yes, it’s terrible.  This is the worst thing that could have happened to America at the worst time.  It’s caused market upheaval around the world and some analysts think that it would be worse right now if we knew what to look for.  Fortunately, or not, depending on your view, the Wall Street shenanigans are as difficult to unravel as they were successful in their profiteering during the good times.  But, the media is missing something very important – we, as people and as a country, will recover.  And if history serves as a measuring stick, we will recover relatively quickly.