What Has Changed in a Week?

I don't pretend to be an economist or much of even a minor expert on these things. So as I listened to the radio and TV this past week I simply tried to absorb what I was hearing and not try to make up my mind with any finality or assurance. Then when the week ended and I listened to the news this came to mind?

After all this bally-hoo, what has changed?

After all, the Dow Jones average plummeted on a couple occasions and then went surging back up. Today it is virtually the same as it was a week ago when all this started. So what is going on? What has changed in the past seven days>

As I sit on the outside looking in at this I have several things that seemed to have changed.

First, the campaign has returned to issues, even though not very well.

Second, we are all more skittish and nervous.

Third, we have seen the government seem to indicate that it is not sure what to do. One day they say there are to be no governmental bailouts (Lehman Bros.), the next they are pulling another bailout (AIG) and the week ended with them proposing all kinds of safeguards and regulations.

Fourth, some major questions all surrounding the question, we can have capitalism when things are going well but we move toward socialism to cover the losses. In other words, the Big Guys make the money while the Little Guys pick up the tax tab when things go wrong.

Fifth, complete deregulation and free market economics have some real shortcomings.

Sixth, we will survive and things will eventually smooth out. There has been a correction in stock prices coming. This may (hopefully) be it. But the correction may also lead to some changes in how things are run in the economy. I don't know enough to know what those things are, but they are at least bubbling around under the surface.