For almost two months the US markets have been rocked and rolled by more weak economic data and a sovereign debt crisis in Europe.
Such uncertain times call for leadership, in this case economic leadership from Washington.
As Greece teeters on the brink with the EU dithering and negotiating over this weekend, the waves of distress have now begun to wash upon our already stormy American shores.
Fed chief Ben Bernanke and Treasury honcho Tim Geithner have been notably silent on the subject. In fairness, Ben talks about the US economy, perhaps too much sometimes. But Geithner hardly at all — unlike many of his predecessors.
With US markets going soft , and the European Union saga reintroducing excessive fear and real panic into our markets, it’s remarkable that our two economic leaders remain silent on the subject.
Given that the average American really doesn’t understand the interrelationship of a country missing interest payments on its bonds, they just need to know if our economic czars say they are on top of it.
Leaders lead in good times and bad, but leadership is defined in times of difficulty.
Irrespective of the policies, former Treasury Secretary Robert Rubin and Fed Chairman Alan Greenspan were masters at economic leadership by explaining and conveying, whether their policies were decent or not. They removed a lot of the fear by explaining the unknown and assuring the people that they were on the job.
Ironically, many economists and strategists felt Geithner commented more on the US economy when he was president of the New York Fed.
It is easy to understand why no one wants to be front and center on the economy these days, but that is exactly what’s needed, economic leadership.
An explanatory fact-based fear-reducing discussion of sorts is clearly needed to calm The Street and the 401(k) investor alike.
Go figure. With times as economically challenging as these, Americans are entitled to and require economic leadership that works to alleviate the irrational fears and panic and focuses on the real issues.