Earlier last week on CBS’ Sunday Morning, Ben Stein put on his economist's hat and suggested that dooms-day predictions from the Obama administration and others are part of the problem. He even quoted Bill Clinton saying "what we need is more cheerleading and less fear-mongering". He went on to say that "while unemployment is at 8%, 92% of the nation's workforce is employed and 92% of US households are not behind on their mortgages...[and] notice that recently Ben Bernanke said the recession might end this year, and the stock market rocketed up that day". Mr Stein suggested that President Obama and his impressive cadre of economic advisors start talking about what is working rather than what isn't.
Things are certainly not good with the world's economy, but I suspect that Ben (Stein) is onto something here. He explained that "our money supply is sufficient, but the velocity with which it is engaged and moving through the economy is stagnant due to fear". While denial is never wise, it also seems that succumbing to fear and hording capital when there are clear opportunities to be derived from strategic well analyzed spend will play a critical role in recovery. If you can ascribe a 12 month or less ROI to an initiative -- even when volumes are way off -- go for it. Don't succumb to the fear mongers.