There is the story of the boy who cried wolf. One day the wolf came and no one did anything because they boy had cried wolf too often. The wolf is finally here, and after hearing politician after politician talk about the end of the world, when you finally have a crisis that can cause the end of the world, no one believes them.
What happens next depends on how quickly things unravel versus how quickly people just get over their anger and realize how bad the situation is. One reason that I think Paulson’s bill failed was that there really hasn’t been a bad impact to the economy, and I think that things will have to get a little worse before people really realize that the wolf is out there. I think the challenge now is to have things fall apart slowly so that as people realize that this isn’t the usual politics, things don’t get so bad that they are unfixable.