The Misery Index was invented long ago, when inflation was measured in double digits and job losses were double, in relation to the size of the workforce, what they are today. The index is simply the sum of the unemployment rate and the inflation rate. Today the index is below the levels of all the recessions in the past 40 years, with the exception of the last (mild) recession. That's not to say this isn't a painful recession, just that we've seen lots worse in the past. That doesn't stop the hype, though, and it hasn't stopped the market from expecting this recession to quickly develop into a depression accompanied by massive deflation.
It will take some pretty awful, terribly catastrophic news to push this market down further. And that's a reason to be optimistic despite all the gloomy news.
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The Tax Foundation produced this chart and it speaks for itself. How hard is it to understand that in order for U.S. business to be competitive in the world, we need to cut corporate tax rates? Cutting the corporate tax rate is a stimulus measure that can take effect almost instantly, whereas it will take many months and years for Obama's infrastructure spending/stimulus to take effect.
This chart has data through December 3rd, and things are still looking good. Nonfinancial corporations are still able to access the commercial paper market, and the amount outstanding continues to rise, as it has for the past five years. Same story for Commercial and Industrial Loans.
