Phil Gramm is an arrogant idiot. Always has been. The fact he's McCain's leading economic adviser troubles me. There are few politicians I have detested more than this jerkhead. McCain's campaign is a complete disaster of a joke so far. It's early but he better pull it together soon. If he doesn't hit the streets with something coherent soon, I'm going to write him off. Seriously, if he can't manage a presidential campaign any better than this, what will happen when he hits the White House? It's almost becoming clearer by the day that his proper place is as a conservative maverick in the Senate. He just may not be the executive/leader type. Heroes usually don't make good leaders, and we may be seeing this first-hand in John McCain. He was brave in battle but he didn't have what it took to be a general. He's had a very long and distinguished career in the Senate and maybe he should just stay there. When you think about it, McCain's military service record may be proof of why he shouldn't be president. Same for his extended tenure in the Senate. There is a reason long-time Senators rarely become president.
The problem I have with you belief in the mental recession part of the economy is that it ignores the causes behind the mental attitude toward the economy. Yes an economy is affected both positively and negatively by consumer confidence or lack there of. However if you stop there, then you aren't really doing much examining. Looking further it becomes clear that there are very real tangible causes that effect consumer confidence. It's kind of like recovery from an accident. The doctors and physical therapists all say that a positive attitude helps in the recovery. But there are still real reasons why something needs to rehabbed, and there are still very tangible steps, medications, and/or surgeries that are needed. Obviously mental attitude plays a part, but it is dangerous and negligent to ignore the tangible symptoms.
I don't think everything boils down to mental attitude but clearly it does play a role in our economy. As I said to a certain point I agree with Phil Gramm not that I totally agree.
I'm glad to hear it, but I don't think that any disagrees with that, or that is the reason people were upset with Gramm's comments. I think everyone believes consumer confidence of lack there of will play a part in the economy. The problem is when somebody like Gramm tries to claim that the only thing wrong with our economy right now is the mindset of the consumer. There are real problems with our economy, and Gramm trying to pretend like they don't exist shows that it isn't the consumer that is delusional.
As I said Gramm's delivery was terrible and his view was overly simplistic so I'm not surprised that a lot of people are upset by it. All I'm saying though is that we can't dismiss that people's mindsets play a big role in our economy.
bumping this thread just to say that one of mccain's chief advisors is Carly Fiorina, she was on Meet the Press yesterday.
There is some element of truth to what Gramm said. We are a nation of whiners. Are times tough? Of course. I know I sure as hell don't enjoy paying 60+ bucks to refill my tank. But what I get tired of is the hyperbole spewed by everyone like we're on the verge of another depression. And for this, the media deserves a ton of blame. The fact that you've got people on TV saying these are the toughest economic times we've ever encountered in our nation's history(yes, a Democrat operative actually said that last week), that the last 4 years have been more down than up(George Stephanopolous uttered that misinformation yesterday), and no less a source than Barack Obama himself saying there's little doubt we're in a recession when last time I checked we haven't had one quarter of negative growth let alone two, it's little wonder that most Americans are freaking out right now.
Housing prices are down 20%, multiple banks have failed, inflation is creeping up, growth is around zero, oil prices and commodity prices are skyrocketing, out national debt is out of control, the dollar is dropping like a rock, and worst than all of that is the nasty credit crunch we are soon to find ourselves in. I think there is plenty to freak out about, and none of it is mental.
one thing about this, an actual definition of recession is just as much as a mental issue as what the economy feels like to most americans. fact is that on large scale, very few americans are left who have felt any real economic pain for a long extended period of time. gas prices haven't been like this since the early eighties in terms of inflation. that's thirty years ago. this is new to a lot of consumers. even the recession during the end of the bush 1 years wasn't extended. iow, its all relative, so what if a recession hasn't happened by "recession" definition terms when people's dollars buy less, their gasoline bill is a car note, not to mention other skyrocketing energy and all things neccessary like I don't food, is going up at the same time. yes we still have a very high standard of living but believe me, average americans are having to make major adjustments.
Talking up the economy and pretending everything was great the last 4-5 years is part of what got us into the mess we're in now.
That's ultimately the responsibility of the consumer. If you take out a mortgage you can't afford or rack up credit card debt you can't pay off, that's not the fault of the government. Granted, politicians aren't setting a good example by spending money like there's no tomorrow, but one aspect of this economic crunch that's being completely ignored is the personal responsibility of the individual.
mortgage failures are the ultimate responsibility of the lenders, its their jobs to make sound loans. they get paid six figures to do so
Im suprised this doesnt get mentioned more. Carly is the queen of sending American jobs overseas, she is also regarded as one of the worst ceo's ever. HP's stock went up like10% on the day she announced she was leaving/was fired. Very telling that Mccain choose her as his Chief economic advisor.
