It’s October, which means a new season of The Walking Dead, Halloween movie marathons, and scary ghouls and goblins ringing your doorbell looking for some candy. If only the scary things would stay on the TV screen, right? But it seems they’re slowly, eerily dragging themselves from movie channels over to CNBC. Earlier this week, John Manley wrote about how Wall Street feels like a bad zombie movie. He continues the theme with Dr. Brian Jacobsen and Jim Kochan in this month’s Market Roundup.
“Over the past few years, it has seemed as though the economy was teetering on a cliff or was embroiled in some crisis. The eurozone was about to fall apart. The U.S. government was going to default on its debt. China’s economy was going to have a hard landing. The U.S. government was going to slash and burn spending while sticking it to taxpayers. The Federal Reserve (Fed) was going to taper.
As the U.S. government approaches the debt ceiling in October (or November), we think it’s time somebody pointed out the truth: A lot of these crises are boogeymen. They are scary, but not likely to do lasting damage. Maybe it’s time to wake up and stop believing the horror stories. Yes, bad things would happen if the eurozone collapsed or the U.S. government defaulted on its debt. But we believe that neither of these is probable, and so they’re not worth worrying about.”