To continue, we have had a couple of brief glimpses of sun and blue sky. Hope we get more. I know I said we needed rain a couple of posts ago but there is such a thing as too much of a good thing. Melissa at Shakesville has some pictures of her neighborhood and house. She is somewhere just west of me. Since I started this post we have heard from more of the family who checked to see how we are and conveyed info on others. My sister-in-law has her two grandsons for the day. Their mother found out subsequently that the IU Gary campus was closed and she had no classes today. The older boy's school also closed. That side of the family are all high and dry.
I have been reading about the Lehman/AIG/MerrillLynch situation. One of the sound bites on the news this morning reminded viewers that the banks in trouble represent only a small percentage of the banks in the US. That may be true but (and this is my question) is what percentage of the US economy is tied to them? How many of the rest of the country's banks, not yet in trouble, are tied to them? During the 2001 economic downturn, when states and cities had serious economic problems, I began thinking about dis-economies of scales. We always hear about the ECONOMIES of scale--how as entities grow they deliver more output for lower input costs. But, I wondered, is there a point at which that process stops and then reverses itself. I read recently that New York City has a deficit of $2B as does the State of Illinois. I have wondered lately if the economic pain of letting these 800 lb gorillas die would be worse than the pain of trying to bail them out. And I wonder who would feel the worst pain. By the way, Chris in Paris and other bloggers at Americablog have taken notice of another McCain economic advisor who seems to think that all our gloom and doom is simply our own mental problem. Maybe we should all think happy thoughts and it will all go away.
I think I need to get to my sewing machine and turn my thoughts to something far more pleasant.