Not All Information Is Beneficial.

Over The Years, The U.s. Economy Has Shown A Remarkable Ability To Absorb Shocks Of All Kinds, To Recover, And To Continue To Grow.

If You Want To Understand Geology, Study Earthquakes. If You Want To Understand The Economy, Study The Depression.

The Risk That The Economy Has Entered A Substantial Downturn Appears To Have Diminished Over The Past Month Or So.

There's No Denying That A Collapse In Stock Prices Today Would Pose Serious Macroeconomic Challenges For The United States. Consumer Spending Would Slow, And The U.s. Economy Would Become Less Of A Magnet For Foreign Investors. Economic Growth, Which In Any Case Has Recently Been At Unsustainable Levels, Would Decline Somewhat. History Proves, However, That A Smart Central Bank Can Protect The Economy And The Financial Sector From The Nastier Side Effects Of A Stock Market Collapse.

The Impact On The Broader Economy And Financial Markets Of The Problems In The Subprime Markets Seems Likely To Be Contained.