For over three centuries, economics has been referred to as “the dismal science.” I do think it is fair to say economists are somewhat more droll than normal people. Nonetheless, there is a distinct air of pessimism at this conference, as we face to the painful changes ahead. 87% believe the deficit is the single greatest problem facing America. Clearly, the greatest fear is that our political system will not permit the tough decisions to be made. More than one person has noted America cannot deal with tough issues until a crisis develops, when both political parties have sufficient “cover” to vote inconsistently from their talking points. But, this waiting for a crisis will only make the coming austerity even more difficult. There is clearly a mood to bring on the crisis as soon as possible.

Rahm Emmanuel is alleged to have stated that a crisis is a terrible thing to waste. That makes it even more sad that we wasted the last one . . . because our political system was more interested in their talking points and their re-election. Keep your fingers crossed for the next time and hope it is soon!