The somewhat unexpected announcement of the demise of two of my favored restaurant chains starts me into a rambling somewhat indirect political statement this morning – but bear with me, I will try to get to the point by the end.
I find that Wall Street frequently exhibits a herd mentality (they don’t let me use the term Lemmings around here) that seems to defy logic. The reluctance to help the economy pull out of the current tailspin is perhaps a case in point. So many gloomy predictions become self-fulfilling prophecies.
I am looking for a cheerleader-in-chief who can find an optimistic vision of America and sell it to the voters. One of my criticisms of my President is that he has not aggressively packaged and sold his policies to the American public. I believe many of his policies – including Iraq – have been correct and undertaken with a sincere belief in the justice and necessity of the programs. But he has been unable or unwilling to do what was necessary to sell the product to the man (or woman) in the street.
However, all that said, there are several systemic problems that concern me. First, the creation of real estate collateralized securities has taken the current housing difficulties into other areas of the financial sector and will now magnify the impact of the problem far beyond just lending institutions. Chairman Bernanke at the Fed has tried to ease the credit markets with lower interest rates but has weakened the dollar in the process.
If we view oil as a commodity priced in terms of gold rather than dollars, we see that oil prices have been remarkable stable, It appears that the falling value of the dollar has been a major component in rising oil prices. So the infection has spread into the transportation sectors as airlines, trucking, farming and individual commuters are all shocked by the rising gas and petroleum based product prices.
The Congress has spent the past two years on a witch hunt where “getting Bush” has been their major agenda item. Now they are using the energy crisis to push their own environmental agendas rather than trying to take steps to solve the problems. Pelosi and Reid would have fiddled right along with Nero as Rome burned.
And by the way two new victims to the changing economy filed for bankruptcy this week. National chain restaurants have been caught in a vise of rising food prices on one side and dining consumer budget cuts on the other. Bennigans and Steak and Ale bite the dust in the current shakeout. I would expect franchise locations for Bennigans to remain open for now – but company stores are expected to close. Read the story in the NYT <here>.
Candidate McCain – you need to be getting behind a set of bold steps to stimulate and revitalize the economy and get the government out of the way of the market engines. You need to sell the ideas to the public and you need to get all Congressional candidates on board with a campaign of programs that will excite the public. It is going to come down to decisions for tax cuts and economic incentives versus tax increases and entitlement programs. There is no more fundamental difference between conservatives and liberals and NOW is the time to decide.
See ? I told you I would get there.





I like words - as those of you who wade through my posts will know. Carefully used, I can paint an image with words and my readers can see the same image when they read the paragraph. It is what we call communication. Use the wrong words and a disconnect can occur where your readers take away a different meaning than you intended. 

