argues that "a clear-eyed realism about the challenges facing the United States can gradually inflate a pessimism bubble." He sites "pessimism bubbles" of the past to try to prove his point that things will not necessarily get worse. My sense is (never mind decline in construction spending, factory orders, the labor force contracting by about a half million, consumers not spending, etc) that people are worried and skeptical, and hence the markets are down (despite corporate profits increasing for the fifth consequitive quarter). In good measure the origin of this is a lack confidence in the current administration and this "pessimism bubble" will not abate until after the November elections. There is a lot of money out there not being spent, both by the consumer and by companies (not replacing equipment, hiring, etc.); at some point, perhaps after November, the flood gates will open and the bubble will burst. Also at some point the GOP can help things along by arguing against this new malaise.