The Republicans Will Rise Again
CHICAGO — Reading about the Republican Party as I flew across the country last week was like walking through a graveyard. It was pretty much one journalistic headstone after another. Abandon hope ye who enter these gates. Steve Chapman of the Chicago Tribune made good fun of it all, writing: “Just about everyone agrees that Republicans had better make some big changes: move to the right, move to the center, emphasize social issues, de-emphasize social issues, focus on trying to cut spending, give up trying to cut spending, embrace Sarah Palin or forget Sarah Palin.”
The Reverse Wealth Effect
WASHINGTON — The stock market is nothing if not a psychological barometer. The present signal is unmistakable: fear. It’s not just that the market dropped by more than half; that decline parallels some previous post-World War II bear markets (48 percent in 1973-74 and 49 percent in 2000-2002). More revealing are the day-to-day movements. From mid-September to Nov. 21, there were 50 trading days; on 25, the market moved 4 percent or more (16 down, nine up), reports Wilshire Associates. In the previous 25 years, there were just 25 daily moves of 4 percent or more. We’ve gone from one a year to one every other day. The wild stock swings confirm the palpable fear and uncertainty. On average, households expect to spend only $418 on holiday gifts this year, down 11 percent from last year’s $471, reports the Conference Board. Unemployment remains well below the average peak of post-World War II recessions (7.6 percent). What terrifies Americans is the prospect that the slump will become much worse than average — and that government has lost control of events.
