Quote:
Originally Posted by thegamerslink
So it would be safe to say, that in the off chance that some people, such as, I don't know let's say Democrats for instance want to make a sitting administration look bad, or tilt things in a way they can take advantage of, they all get together and start talking about recession this recession that, the recession is coming and it's coming soon, your going to be facing a recession, your neighbors and friends are having a hard financial times......would that not actually start and/or progress a recession into happening??
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I think there is a dimond in the ruff here, despite the tone of this post . . . the market is probably more driven by emotion than reason -- from Main Street to Wall Street.
Wall Street will be much more rational, as they know what their numbers mean ( most of the time ) -- at least a LOT more than folks on Main Street do . . . . but Wall Street is definitely prone to a "herd mentality" and a fair amount of emotion ( best captured, I think, by Greenspan's phrase "irrational exhuberence" ).
On Main Street, most folks just don't understand anything about economics let alone how politics interfaces with their household economy, really. I mean, folks are busy working, raising kids, planning their next vacation, trying to figure our how to make ends meat, etc.
So, to rephrase the question, is it possible to "talk" the economy into a recession? Possible, I guess, but highly unlikely. While there is lot of emotion in the economy, there's a HELLUVALOT more to it than that . . . . for example, people complain endlessly now about the price of gasoline, but they really haven't done a damned thing about it . . . they MAY consume a gallon or two less a week, but overall the demand side of the curve is still on the rise -- even if slowed a tiny bit.
Does the DNC want to take political advantage of the fact that most Americans are getting squeezed financially? OF COURSE! Why wouldn't they? Have they CAUSED a recession by talking about it? Please! People are just way more complex than to be reduced to that.