The effects of the declining economy are being felt by many people; higher energy and food prices and lower home equity values are weighing heavily on consumer spending. The Democrats’ constant threats of tax increases are beginning to be reflected in lower stock market values. Investors are facing the reality of higher taxes on interest, dividends and capital gains if Democrats remain in the majority.

I am pleased that Federal Reserve Chairman Ben Bernanke came to testify to the House Budget Committee this morning. He testified that, “A fiscal initiative at this juncture could prove quite counterproductive, if (for example) it provided economic stimulus at the wrong time or compromised fiscal discipline in the longer term.