MaxedOutMamma (an economist somewhere but she seems to only drop tantalizing clues as to where she plies her trade) is concerned:
I was troubled by how many people seemed to feel the economy wasn't in deep trouble. Profound skepticism and the belief that this is all media/political highjinks seem almost to be the consensus.
I guess you may have to put me in the majority. I certainly don't doubt that we are headed for a recession. And it would not surprise me if this is the worst recession that most 20-something Obama voters have experienced, though that is not saying much. But I am not sure we are even facing the Seventies in this one and we certainly are not facing the 1930s.
Here is the problem that we more casual consumers of economic news must struggle with -- the media has fairly accurately predicted 20 of the last 3 economic downturns. Everywhere you turn, you see analogies to the Great Depression, a period of time where unemployment topped 25%. Given the media's track record and the nearly breathless panic about the looming economic disaster, any sane person has to put a divide-by-X filter on economic news. It is certainly possible that I and other are using too large of an X as a correction factor, but is that my fault, or the fault of the purveyors of information who can't tell any story straight.
By the way, for us Polyannas, here are several interesting posts from Mark Perry