Economic Blind Faith

Paul Krugman wrote a column today titled, "Financial Policy Despair". Reading it sure didn't cheer me up, though the market was expected to open 'up' today. What does it mean that when my most trusted economist gets depressed, the markets rebound?

Makes sense, when you think about it. Krugman, and some other economists who have zero interest vested in 'the way things are', continue to feel increasing despair over the Obama/Geithner management team. It's clear to me that the market has ceased to reflect anything meaningful regarding the true state of the economy. Translate -- whether or not the majority of Americans are going to hang on through all of this. Instead, it's a barometer of how confident Wall Street is that the Big Boys will recover their gold. And when the Big Boys are happy, a chill starts to trickle through me.

I supported Obama. I had great hope and I'm trying hard to hang on to all those good feelings I had when he won the election. He wasn't my first choice because I believed he didn't have a solid vision nor the requisite personality traits to play hardball. Hillary was my choice, and I'm still convinced she would have provided stronger and more progressive leadership. But I have stood behind Obama because for all our flaws as Democrats, and Obama's flaws in particular, we can't afford Republicans running things any time soon.

But now I'm really, really worried. First, for the economic near- and long-term. Here in Kansas City, local job losses are mounting. It's much worse than I expected -- unemployment at 8.2% and growing. The worst-case scenarios being played out are nearly immobilizing in their implications. Much more stimulus money is going to be needed, but that's at risk as Obama listens to people deeply embedded in the Wall Street mentality.

Secondly, if Obama's policies fail -- and I think the risk of that is growing -- then the Democrats will be in deep difficulty politically at the mid-term elections. That will compromise any other transformative change we need to make in this country. Health care and the environment will be in even greater peril.

I haven't yet figured out how to influence any of this. I feel completely impotent. The best I can do is plan and work towards personal and community-based survival strategies that help us weather the deeper crash that may yet lie ahead. Let's hope our communal creativity won't be tested.