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Maybe it really is the economy

Posted at 10:11 AM on August 16, 2007 by Bob Collins (4 Comments)

Perhaps I spend too much time watching CNBC, but I don't think they're making it up. The housing market is the lowest its been in 10 years, nobody's lending money, and when nobody's lending money, the economy isn't expanding. The markets are unwinding, and good luck trying to go shopping and find something actually made in America. Add all that together and it begins to smell like a recession to me. Right in the middle of campaign season.

People get hurt in recessions. With high rewards -- as Americans have reaped in their IRAs and 401Ks and 403Bs can attest -- comes high risk. We've had the rewards, now comes the risk.

So how does that change the presidential race. For the most part, the economy hasn't played big so far; certainly not as big as Iraq which the Democrats are sure is an issue they can ride into the White House.

If people are losing jobs, and retirement money (even if it is only on paper), do they still care more about Iraq?

Comments (4)

"If people are losing jobs, and retirement money (even if it is only on paper), do they still care more about Iraq?"

Of course nothing is more important than my family, but if I don't have family in Iraq, then my pocket book, how I take care of my family everyday, is king.

Posted by Brian Hanf | August 16, 2007 11:32 AM

We've had the rewards, now comes the risk.
Which we do you mean? Almost everyone I know doesn't worry about 401(k)s & IRAs because we're just trying to hang on to our houses & health insurance. We've been in that situation for years. And the we I'm in is middle-aged and has graduate degrees.

I've been stunned to see how little the stock market affects me any more. I didn't see good jobs become available as the Dow inched toward 14K. I guess that's because any resulting investment took place overseas. So it really has surprisingly little effect on me to see the Dow tumble. In a way, I'm relieved. Maybe if those of us who've been hanging on by our fingernails get some more company from those of you who have IRAs and such, something will actually get done around here. I can only hope.

Posted by Ellen | August 16, 2007 12:25 PM

I don't see how a falling economy -- especially as companies lose value by a collapsing stock market -- doesn't impact you.

When people lose jobs, they lose their houses and health insurance.

During the boom years, mortgage companies granted loans and mortgages to people who probably should've paid attention a bit more to how economics works, and now those companies are collapsing, their value and assets are declining, and people are losing their homes.

In many ways, it's a typical boom-bust cycle. People actually DID benefit from the boom, they just don't think they did.

Posted by Bob Collins | August 16, 2007 12:38 PM

"In many ways, it's a typical boom-bust cycle. People actually DID benefit from the boom, they just don't think they did. "

Yes - in any Boom years people (average folks) fail to see the boom (too busy buying Ipod's and tivo's I guess) , only in the bust do they see how everything (well a lot of things) is connected.

Posted by Brian Hanf | August 23, 2007 11:56 AM

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