It is the old and now familiar story. In Europe, a paralyzed political establishment is watching the steady deterioration of the financial system like the proverbial deer in the headlights. In the US, the oncoming train wreck of entitlement spending elicits the same response: fatalistic passivity. Add growing worries about the Chinese and Indian financial systems, and you have a toxic cocktail no one really wants to quaff.Quaff it we will, however, and to the dregs. Markets are plunging this morning as I head off to give some lectures on American history; it’s all the more remarkable because in America at least more and more signs point to an economy that is trying to recover. The index of leading economic indicators is rising, GDP growth (still modest) is getting stronger, and even holiday spending looks to be higher.Hopefully by the time I come up for air later this afternoon — and return to blogging — some politician somewhere will say something mildly intelligent and the markets will find their footing. But between our not so supercommittee, the European meltdown and the rickety Asian financial systems, the world does not look as cheery as one would wish at the start of Thanksgiving week.
Politicians Fail, Markets Plunge