This will surely negatively impact the largest state economy in the country. As if this were not enough, the writers and other staff in the television and film industry are about to go on strike, thereby damaging the Southern California economy as well as the fledgling one in Texas. Floods plague the upper Midwest. Drought still stalks Florida. This has further resulted in lower tourist bookings, which had already slowed due to higher airfares from higher energy prices.
Japan still staggers along with zero interest rates and no growth.
Al Hunt is a political consultant to the Democrat Party, passing himself off as an economic analyst. And he is reflecting the Wave Two, or bounce psychology. Al will see the real problems soon enough. The above reasons should give one an idea as to what Bob Novak is worrying about. Dennis Elam is a regional analyst for the Odessa American and lectures at Southwest Texas University School of Business.