An argument for optimism.

This week, Fannie May and Freddie Mac made headlines on rumors of government intervention. Share prices tumbled on fears the two secondary mortgage market giants would be inadequately funded to buy paper from the primary market.

This morning, President Bush addressed the issue by remarking, "We must ensure we can continue providing credit during this time of stress," citing both skyrocketing energy costs and mortgage industry stabalization.

"Time of stress" probably sums up what most are feeling - but is it reasonable, or media-fueled hysteria?

Here's the ugly truth: We are likely in a recession - just putting in our time during the mandatory waiting period to find out for sure. My heating oil company quoted me $4.71 per gallon for fuel yesterday. The value of a dollar has plummeted. Real estate speculators are selling their million dollar condos purchased last year for $800,000. It seems the sky is falling.

The result of these pressures; Everywhere people are tightening their belts, cancelling unneeded subscriptions, putting on sweaters instead of turning up the heat, vacationing close to home, driving less, and resurrecting the concept of the family budget.

This sounds like a time of stress? The symptoms we're complaining about are fueling the strongest economic stabalization in my lifetime.

Supporting this stabalization is a glut of regulation that should have been recommended by the previous FED Chairman Alan Greenspan. The gist: Only lend money to those who can afford to pay it back.

And what about those who can afford to pay it back? They'll pay around six percent interest for a home loan - a far cry from the 14-15% seen in the 1980's. The cost of borrowing $200,000 is now around $1200 per month for a 30-year fixed-rate loan, as opposed to $2500 per month three decades ago.

And what about the economy? Soaring energy prices are finally forcing us to commit to energy independence. The next ten years is going to see American's thirst for alternative energies satisfied by innovation on par with the tech revolution of the 90's and the industrial revolution of the 50's.

This is a time of stress -which always comes before growth. Americans have a lot to be excited about.