Friday, August 3, 2007

Wyle E. Coyote just looked down

One element of a "perfect" political storm is an economic down-turn. Although economic anxiety has been an element of the national discomfort with Bush, the economy has been humming along nicely for some time. That may be changing.

As Mark Kleiman, from whom I steal my headline, puts it, "To those of who have been wondering when the insanity of the Bush Administration's fiscal management was going to catch up with us, the answer may well be: just about now."

The first sign of big trouble was the Bear Stearns hedge funds zeroing out, on July 18.

On Friday, American Home Mortgage closed its doors. columnist Mark Gilbert, after toting up signs of credit instability worldwide, notes: "At least 70 U.S. mortgage companies have shut, gone bust or sold themselves since the start of last year, according to Bloomberg data. As Dennis Gartman, economist and editor of the Suffolk, Virginia-based Gartman Letter, is fond of saying in his research reports, there's never only one cockroach."

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