The Economy? Words Fail Me.

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Washington Sketch: Economic Anxiety Disorder

The Washington Post's Dana Milbank sketches Assistant Treasury Secretary Phillip Swagel's briefing on the ailing US economy.

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"Um, I'll start off as usual with a short statement and then, uh, take questions," he began.

In his statement, he employed the great euphemisms of his profession: the economic "headwinds," the housing "correction," the credit-market "disruption." But, he offered, "the stimulus package will help support . . . spending."

A questioner asked about private forecasts, which, in contrast to administration forecasts, see a contracting economy through early next year. "You know, it doesn't look like it to us now, but obviously we'll have to see where we are at the end of the year," he answered.

Might a second stimulus package be necessary? "Right now, the way we see it is the rebates that are already going out are big enough, and were timely enough, to make a difference and-and to support spending," he said.

Swagel was asked whether the energy shock and a longer-than-expected housing slump justify more federal action. He admitted that rising gas prices have pretty much offset the tax rebate checks, but this only proves, he said, that "the stimulus payments were timely and needed."

Asked if he could reassure those who worry it's time to hide valuables under the mattress and get a shotgun, he chuckled and then ventured: "You know it's i-in a sense what -- I think what matters is it's worse than, it's worse than, it should be."

For a brief, joyous moment for the economist, it appeared he had exhausted all the questions, but as soon as Swagel got out "I hope everyone has a good holiday," another hand went up.

The reporter asked if he saw any hope for economic revival in the new employment report. Swagel exhaled loudly. "No," he said, then sniffed and exhaled again. "You know, the data today, right, we had, wage gains were decent, but of course we know that overall inflation, uh, is going to fully offset and more those, uh, you know, those wage gains," he said. The unemployment rate remained at 5.5 percent, but "I don't . . . take any comfort from that."

Though still forecasting "modest but positive growth," he cautioned that "you're going to still see a weak labor market, so, um, yeah, so it's not, I don't expect to come out next month and, uh, you know, and have great news on the labor market, either."

And with that, the Treasury official departed the room for what one hopes will be some much-needed calm.

For a video version of this column, go to washingtonpost.com.