Despite Herbert Stein’s observation, “That which is unsustainable will not be sustained,” the vast majority of people still want to believe that things can and will go on as before. That’s what the monetary easing and fiscal stimulus plan are all about.

This is America. Bush said we have a right to the American way of life. That view is still intact. It will be interesting to see how long it takes for it to crack.

Why is it that commentators often feel they have to tell us how “grim” things are? As if this return to lending and risk standards closer to historic norms is somehow the problem, instead of the what went on in the last few years. So we should not have this correction? Instead we should continue as before?

Consumer loan demand is way, way down. Interestingly, it’s been pretty negative since ‘04. Strange that they report that at the same time that consumer credit, particularly revolving, is increasing dramatically.

I get uneasy when I see poor correlation like that.