How much of the financial crisis is psychological?
Why the crescendo of economic collapse right before the election? Why didn't the media and congress act just as concerned some time ago or wait until sometime after the election to go into crisis mode? The timing of the current financial crisis seems too planned and calculating to be just a coincidence. Polls show that people's number one concern right now is the economy and that for the most part, voters believe Democrats are somewhat more likely to help with the economy. Could it be that the liberal media and those in Congress, knowing that, is blaring the bad economic news from the rooftops in order to manipulate voters into voting for a Democrat? If so, it won't be the first time.
Mark Penn, chief adviser to Clinton, acknowledged in his book Microtrends that people thought because of the media that the recession and economy prior to Clinton getting elected was worse than it was:
I have found over the years that there is often a huge disconnect between belief about the economy and the true economic state of affairs. Until the statistics are actually published, people tend to assess the economy through the eyes of the national media. In 1992, when Bill Clinton won the presidency based on worries about the economy, the statistics that came out after the election showed that the period leading up to November had actually been a period of record growth. . . . In his 1996 State of the Union speech, President Clinton said we had the best economy in thirty years -- a statement that sent a flurry of reporters to check actual statistics rather than popular political movements and sweeping, politically motivated statements. The more people looked at the facts, the more they agreed, and six months later, there was near-unanimity that the economy was in good shape. Had the economy changed? No, what had changed was knowledge about the true facts of the economy.
My guess is that if Obama gets elected, the true facts of the economy will come out. Suddenly, our economic outlook will look much brighter after November 5th. In the coming months and years after the election, we will be told how Obama has managed this crisis and overcome it, despite the fact that he and other Democrats had their hands in the Fannie Mae and Freddie Mac fiasco and caused some of it, but that's another story. But by then, it will be too late. Those who voted for Obama based on economic fear may realize too late that they may have buyer's remorse.