The New York Times, like every other news outlet in the country, is reporting today on the tough times on Wall Street, Lehman’s bankruptcy and so on. The article also had this nugget about what president Bush has to say to the American people (and, in this globalized, interconnected world economy, to the world).
Appearing briefly in the morning before reporters in the Rose Garden, Mr. Bush characterized the recent events as short-term market adjustments that would have a limited effect on an otherwise sound economy.
“I know Americans are concerned about the adjustments that are taking place in our financial markets,” Mr. Bush said at a ceremony to welcome the president of Ghana.
He added: “In the short run, adjustments in the financial markets can be painful — both for the people concerned about their investments, and for the employees of the affected firms. In the long run, I’m confident that our capital markets are flexible and resilient, and can deal with these adjustments.”
Adjustments? It’s right up there with my other favorite word – corrections (as in stock market “corrections”). I’m pretty sure Poole will recognize this bit of Unspeak – “adjustment” is usually a good thing to make. It connotes refinement, improvement and gradual perfection. You’ve got to love the spin doctors of the Bush administration – they have given the world so many examples and case studies to learn their art.
On a related note, things are probably going to get a worse for real estate before they get better. See if you can spot the bubble in the chart below.
Chart of US real estate prices