One of the new talking points making the rounds, including the quote from Bill Clinton, in which all his praise of Obama was ignored, and the media focused on Clinton saying Obama needed to be more hopeful, is the notion that Obama's honest discussion about the economic crisis is a cause of the crisis.
In sharp contrast, look at the Bush administrations's happy talk in June 2007, which did not exactly prevent the current crisis:
http://www.hud.gov/news/speeches/2007-06-25b.cfm /snip
Adjustments are underway. Treasury Secretary Paulson confirmed this last week. He believes that we are nearing the end of the slump. Fed Chief Bernanke said virtually the same thing two weeks ago, and reported that there have been "no major spillovers from housing onto other sectors of the economy."Well, that is good news. But it could take up to two years to work-off excess inventories of homes and to complete the market correction. At the same time, it could be up to five years before we see the housing market return to where it would have been without the dramatic up/down cycle during this decade. Many economists believe that housing market cycles tend to be roughly 10 years in duration. A 5-year run-up, like we experienced from 2001 to 2005, is usually followed by a five-year period of correction and recovery. This market cycle just began its correction last year. We will know that the correction is over when we see a steady flow of new home sales above 1.1 million units per year, existing home sales stabilizing close to 6.5 million units per year, and house price appreciation of close to 4 percent per year. We also need to see the inventory of homes for sale drop from its current 7-plus months to something less than 5 months supply.
So it is likely we may have already seen the worst./snip