Let us stipulate that no one knows the future and that now-unforeseen trends or pressures could bring worse problems. But the evidence so far points the other way. But many economists now believe that the main reason to be pessimistic about the American economy is America's pessimistic attitude. The rapid shift in economic mood is understandable because of two kinds of misfortune striking more frequently these days. One is seeing money taken out of your hands.
People generally respond to loss more powerfully than gain.
The recent path of the Nasdaq illustrates the point. Even in the low 2000s, it's more than twice as high as it was five years ago. If you'd been asked at the time whether you'd be happy with a doubling in five years, the only rational answer would have been yes. But the sense of loss about the trillions of dollars of wealth that have evaporated in the past 12 months makes it hard to appreciate the other trillions gained over the past five years. The other emotional trigger is loss of jobs, always the most devastating economic event.