Peggy Noonan’s universe is coming to an end. Well, that’s what we’re led to believe if we take her latest WSJ column at face value. The column is 1200 words of anecdotes from people she knows, in and out of the halls of power in New York and Washington, telling her that Something is Wrong. People are buying guns and antidepressants and withdrawing all their money from the bank and looking for rural real estate on which to “grow things.” It feels like 1930.
I respectfully disagree. Not that Something is Wrong; there is definitely something wrong, but it’s with the media, not the people. I know I’m using a broad brush by referring to the media, which includes everyone from the hysterical Jim Cramer to the phlegmatic Ms. Noonan. But the thread they have in common is to insinuate that there is some fundamental change in the way Americans view life, six months into the financial crisis and over a year into the recession.
The facts don’t come out in the media’s favor. Their own reports are at odds with the gloomy way they are presented. 8% unemployment! Ford workers losing their Easter Monday holiday in labor concessions! 401K matches being suspended! Help! The sky is falling! 8% unemployment (and even 10+% in Michigan and California) is no picnic, but that still means 90-92% of Americans who want a job have one. Easter Monday? For crying out loud. I didn’t even know this was a holiday anywhere, and I work at a bank.
On the subject of banks, I can state confidently that populist congressional representatives grilling bank executives about “failures” to disperse TARP funds is all politicking. Banks are lending; people are taking their money out of risky investment vehicles and placing it in FDIC-insured savings accounts, not under the mattress as Ms. Noonan would lead us to believe. The reason constituents are complaining to congress is because non-bank lenders are out in the cold, and banks and non-banks alike are now somewhat more selective to whom they extend credit (i.e., something more than a name and a pulse is now required, as opposed to, say, mid-2005). Personal savings rates are up. This is good stuff. Would these mournful journalists have us leap back into the Madoff-esque investments and 80:20 piggyback mortgages they’ve been decrying for the past year?
I didn’t think so.
Of course, the “media” is also mourning the failures of daily newspapers across the nation, and zeroing in on TV and cable executives who are fighting the migration to the Internet (and subsequent reduced revenue) of their broadcast cash cows. From a consumer perspective, innovation is working its magic. Printed papers will eventually go the way of the telegraph, and TV content will eventually be on-demand and consumer-driven. Innovate or die, folks.
All of this makes little difference to the 90+% of American workers who get up and go to the job every day. Most people are worried about retirement, healthcare, college for the kids, and so forth, but that’s not new. One of my colleagues got it about right the other day when he said that the “recovery” will take place when we stop complaining how bad things are, dust ourselves off and get to work fixing the problems. Journalists take note.


