Vanishing Illusions

The economic crisis is so powerful that it’s tearing everything down with it, including the hope of a simple, cheap solution.

When the U.S. economy collapses, developing countries like China and India will be able to save the world economy. This was the first line of defense the professional optimists had in their war against the windmills, the economic pessimists. And rock-solid Europe was in much better shape than the slip-shod Americans who lived beyond their means and now have to pay the bill for their excesses. Now that illusion is down the drain. Schadenfreude has turned to frustration in Germany.

Then the hope was if Asia, Latin America and Europe couldn’t escape the downturn, at least our wonderful labor market would help. Everything has become much more stable there since employers held on to their skilled workers in anticipation of the next upswing. Gone, this hope has also turned out to be a disappointment.

Like a landslide, this economic crisis is carrying away everything in its path that isn’t nailed down, and it spares no sector of the economy. How bad it will get depends mainly on how long it all lasts. It has to get better someday, that’s fortunately a fact and not just a wish. But to date, nobody has been able to detect a turning point. Finding one by cheering about doomsday scenarios isn’t helping either. That’s Obama’s message to Americans. And here as there, he’s the beacon of hope for everyone.