I remember the Pollyannas calling those who predicted this crisis chicken littles.

They claimed that SD was immune because this real estate downturn is nothing like the 1990s when the S&L failed and there were layoffs due to defense downsizing.

The deleveraging process will be worse. And guess what? When we finally pull out of Iraq, defense spending will decrease as well.

On the S&L, corruption was endemic back in the day. And who was instrumental in deregulating the banks? Phil Gramm. Guilty by association. This presidential campaign will be fun to watch. I’m enjoying it.

I only wish that Obama would hit back harder. Instead of rapid reaction, he should go with rapid offense.