Politicians now predict the implosion of the U.S. auto industry. Headlines warn that the entire banking system is on the verge of utter collapse. The all-day/all-night cable news shows and op-ed columnists talk of another Dark Age on the horizon, as each day another corporation lines up for its me-too bailout.
News magazines depict President-elect Obama as the new Franklin Delano Roosevelt, facing a crisis akin to the Great Depression. Columnists for The New York Times even dreamed that George Bush might just resign now to allow the savior Obama a two-month head start on his presidency.
We are witnessing a new hysterical style, in which the Baby Boomer "me generation" that now runs America jettisons knowledge of the past and daily proclaims that each new development requires both a radical solution and another bogeyman to blame for being mean or unfair to them.
We haven't seen such frenzy since the Y2K sham, when we were warned to stock up on flashlights and bottled water as our nation's computers would simply shut down on Jan. 1, 2000 -- and with them the country itself.
Get a grip. Much of our current panic is psychological, and hyped by instantaneous electronic communications and second-by-second 24-hour
news blasts. There has not been a nationwide plague that felled our workers. No earthquake has destroyed American infrastructure. The material United States before the September 2008 financial panic is largely the same as the one after. Once we tighten our belts and pay off the debts run up by Wall Street speculators and millions of borrowers who walked away from what they owed others -- and we can do this in a $13 trillion annual economy -- sanity will return.
Gas, now below $2 a gallon, is still falling, saving Americans hundreds of billions of dollars. As housing prices settle, millions of young Americans will buy homes that just recently were said to be out of reach of a new generation.
If it was once considered a sign of economic robustness that homes doubled in value in just a few years, why is it seen as a disaster that they now sell on the way down for what they did recently on the way up? If we were recently terrified that gas would reach $5 a gallon, why do we now just shrug that it might fall to $1.50?
Unemployment is still below 7 percent; it was around 25 percent when Franklin Roosevelt became president. Less than 20 banks have failed, not the 4,000 that went under in the first part of 1933.
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