The WSJ reports that Americans have seen 18% of their wealth vanish in 2008. That’s a rather conservative estimate because they go on in the piece to note some folks have lost upwards of 35% of their wealth. I’ve talked to friends who have lost 40% or more in the past few months.
Given this terribly bleak news about how Americans are seeing their life’s savings and investments disappear, coupled with news like the tent cities popping up around the nation and ever rising unemployment rates, I don’t understand how President Obama can say the “economic crisis ‘not as bad as we think.'”
I understand the goal is to encourage economic confidence and get consumers back out their spending, however, the majority of economists on both sides of the aisle have made it clear this is the worst recession in decades and it’s bordering on a depression.
I’m all for President Obama sounding hopeful on the economy and I noted here a while back when Bill Clinton said Obama needed to sound more hopeful, that I agreed with Clinton. I don’t think glossing over what is really happening is the right way to go about increasing hope. We had that with the last administration. I expect better from President Obama.