Today the Nikkei dropped nearly 10% in Japan, the world's second largest economy (while we were all watching the debate). Many other Asian markets were down over 5%. The British government is about to announce a $90B bailout of major banks. Yesterday the Dow fell 500+ points. What will happen tomorrow?
What brings back investor confidence? Can Barack channel his growing lead into some real leadership now and help?
I watched the debate with a roomful of over 25 Democrats tonight and afterward we had a discussion. We all agreed Barack had done well enough, or McCain not well enough to make a game changer. But an interesting comment, with which most of us agreed, was that neither candidate said anything new about the financial crisis, with the possible exception of McCain talking about bailing out mortgages (which is another flip flop). We all agreed that while he's up, Obama doesn't want to create more fear (remember the question about will it get worse before it gets better) or to address more specifics because he can't implement them anyway and the situation changes daily. And why risk your lead when you have to get elected to make any changes? He didn't, for example, name a potential Treasury Secretary.
BUT, what Obama can do, is make an FDR-like "The only thing we have to fear is fear itself" kind of speech. Bill it as a major address. Take the ball that is being handed to him, one percentage point at a time, one scared voter at a time, and tell not just the American public but the WORLD that we will prevail, that we only have to fear fear itself, and that he will immediately call a panel of top advisors to follow the situation and make recommendations to both existing and future (his) government authorities. People seem to like Buffet. Use him please in some way. Bring back Rubin.
I think an action like this can not only clinch the race for Obama, taking the mantle that is being handed to him by a fearful American public, but it can also help calm the markets, as the markets accept that he will be the free world's next leader. The biggest problem now is a lack of leadership...Bush is useless, and American voters are running from McCain and the Republicans. It's time to step up to the plate.
On a personal note, I own a hotel and our reservations are down OVER 50% in the last 3 weeks. We have laid off staff and I don't know how we will be able to pay mortgage and other payments this month. We may have to cut more, and the business is in trouble without new bookings. We can't wait til November 4. I fear I'm in very good company here. CNN said today 60% of Americans fear we are headed for a GREAT DEPRESSION??? That's a frightened public, and it's a majority.
Please, Senator Obama: Take the bull by the horns and use your great rhetorical skills to calm some fears, and help us to pull out of this mess please. The world needs you.