C-fudd,

What do we mean by an “economic crisis?” Every time there has been a recession and/or market corrections, during my lifetime, the media has called them “economic crises.” I work in the investment business, so it’s hard for the Columbia School of Journalism graduates to blow smoke up my ass. Every single time there has been irrational over valuation of any kind of financial asset, the bubble bursts and the selloff ensues. And every time we have recovered. Markets recover, business soon find their prospects improving… every bear market sows the seeds for the next bull market. We had a real estate and housing bubble that finally started to burst two years ago. We are still unwinding the excess of that period. And by the way, many of the people who fed that speculative bubble were people who got out of the dot.com/tech bubble in ’98-’99 before that bubble burst. They rotated out of that sector of financial assets and sought a place where they sow the beginnings of momentum. Oil and commodities also have been in a speculative bubble. And that is in the process of bursting, hopefully to revert to a mean valuation that is sustainable and economically viable for both consumers and investors in the real activity of finding and drilling oil.

What is happening now is can be attributable to some institutions being too heavily invested in mortgage backed securities. Also, some units of financial institutions got caught holding on too long to long position bets in oil.

Most people know that an economic platform (Obama’s) that calls for higher taxes on capital formation will only do harm to job creation. It’s obvious he knows next to nothing about managing a company, creating jobs, or even successful investing.

It isn’t the economy that will sink John McCain in November. It will be the fact that the country has drifted Leftwards for quite some time and that the unrelenting efforts of the Gramscians within our institutions are finally paying off. Obama will be popular with people who either want a swollen and ready government teat or those who want to be the ones who squeeze that swollen teat’s milk into the mouths open to receive the milk.