And this too shall pass

The gloom and doom on Wall Street, which Obama and the Democrats are trying to hard to exploit for political gain, will pass.

The market has over-reacted, as it frequently does, to some tough economic news, and it will recover, probably before the November election. What goes up must come down.

While McCain is backtracking from his assertion that the economy is fundamentally sound, he was right. A temporary burble or two does not a depression make.

The U.S. economy has been in far worse shape than it is now, and probably will be again some day. As long as the feds can print money to cover collapses like AIG and Goldman Sachs, and force deals like the sale of Merrill Lynch to Bank of America and Lehman Brothers to Barclay's--the economy will not crater.

The housing crisis, the burst bubble behind the current problems, was manufactured by liberals in Congress, who forced lenders to end redlining and make housing loans to unqualified borrowers. They subsidized it through quasi-federal agencies Fannie Mae and Freddie Mac, and bailed them out too, when they got in trouble as a result.

The answer is to let free markets operate unfettered, and let lenders restore reasonable credit standards to making loans.

It will strengthen the economy and restore the stock market. The economy doesn't need a political solution--if there is such a thing. It needs to be left alone, and allowed to heal up and recover on its own.