It's Sad....

[davidrf26]

how many people out there appear to think McCain's stunt yesterday of suspending his campaign and going back to WA to focus on the economy is legit. It was just last week, on one of the worst days in the financial/economic market that he said "The fundamentals of the economy are strong". Now suddenly he feels it's at crisis level? Yeah, tell it

Comments

[darthdogbert]

Actually, it is quite true that the fundamentals of the economy are strong. Corporate balance sheets are healthy, unemployment is in-line with historic averages, and most businesses (outside of financial institutions) have sufficient capital to continue operations.

The issue with the current financial problems are around liquidity within the banking industry, and their inability to extend credit. Long term this affects the ability of businesses to take out loans to leverage growth, halting projects and expansion plans. It really has nothing to do with the health of most companies or the economy as a whole, but without the credit markets, everything is just frozen in place.

As for the decision to suspend the campaign, it is an odd manuever. Cancelling the appearance on Letterman was justified, but I think that the debates will go on as planned.