Republican and Conservative political analysis and commentary

In this post a couple of days ago, I speculated that the mortgage meltdown may be dooming GOP presidential hopes in 2008. The last thing the incumbent party wants is an economic slowdown as an election approaches. But the underlying economy is strong—it probably grew at a greater-than-4-percent annual rate in the second quarter—and if the Fed plays this right, the economy might reaccelerate throughout 2008 despite the credit crunch. If so, this whole episode might end up looking like 1988, where the '87 market crash was an afterthought in the presidential election because the real economy kept chugging along.