From Thursday night’s Fox News All-Stars.
On the politics of the economy:
I think there‘s something new happening in terms of the economy, at least the perception of it, and that is a return of fear. We had the panic of course, the full blown panic attack in September, October ’08, where everybody had a sense that we were going over a cliff.
What happened in ‘09 I think was a sense of yes, we’re in a recession. Things aren’t good. But as Obama himself said, we were pulled back from the brink. And we were in a bad time, but not a scary time. And we had improving numbers by the end of ‘09. At one point we had a recovery of the market to about 11,000. And we had a GDP growth at the end of ‘09 of about 5 percent.
In 2010, we started slipping again, and slipping rather badly, GDP numbers sliding very much. They‘re going to be stagnant now. Shockingly bad numbers on housing this week. The idea that the Fed has run out of options.
And I think what’s returning is a sense we might not just be in doldrums here — a pause, as was suggested in mid-year — but headed into a double dip — or worse. And you see that in the jitteriness of the stock market.
And that I think is new. If economic times are bad, the party in power is in trouble. If people are seized with fear, the party in power has no chance whatsoever.