The pessimism is based on real facts:
-Banks around the world are still overloaded with bad debts.
-Greece can barely afford to pay it's interest bill, and if it defaults then many Billions of "assets" will turn out to vanish from other bank's balance sheets. The domino effect will be huge...but is hidden by "accounting" practices. (should be "un-accounting")
-Once falling, the dominoes will bring other European nations to their knees (Italy, Ireland, France). This could push the US into dire financial territory.
-Around the world falling assets will have to eventually be marked to market...then the smokescreen will fall and real losses will have to be admitted to.
-China has it's own inflation and currency issues...they too have been overloading on debt based on bubble asset prices.
-The bailout of private capital by governments cannot happen again...and de-leveraging is still seen as part of the problem...not the solution. It's like an alcoholic looking for a solution to the addiction that does not include the "problem" of not drinking!
-Biggest issue: Governemnts and business are complicit and dishonest as to what is happening and why. All attempts to pre-empt and prevent the bust are dismissed as "negativity" and "doom mongering"...when in fact they are responsible warnings.
Economics is so poorly understood that the public are easily duped into stupid behaviour. The rise of sucker "mum and dad" investors, the rise of inflation as "wealth generation", and the moral hazard of banks and investment companies being "too big to fail", able to freeze funds and trade while insolvent while the rest of the economy is expected to pay their dues: Corruption and theft has become acceptable so long as it is done by folks on obscene salaries.
Bring on the movements for change.

Ross you state "Markets, as Adam Smith observed, are driven by 'animal spirits' and right now the animals have broken out of the zoo and are on the loose. But they will return to their cages at some point.". Sorry Ross, wrong, this time it really is different. You just need to take off your rose coloured glasses.

You, like most property, economic traditionalists do not understand debt.

We are now in one of the most dangerous social and economic situations the world will ever see. Politically, socially, economically and more importantlly environmentally the world is bankrupt. We have hit the limits to growth. We live on a finite planet and you cannot have continual growth under these circumstances.

The damage is already done, we may see areas of growth, a quarter here or there, but globally the trajectory is continually going to be down from here on in.

The piper is calling and wants to be paid, too much debt, overleveraged financial banks, governments in denial, social unrest growing, what will it take for you to see the real truth.

I suggest you read the works of Richard Heinberg and others like him, you will then grasp the reality of where we are at as a global society.

We have hit the limits of energy production and you cannot grow an economy without cheap, unlimited energy. Get a grip on reality and stop spruiking this type of mainstream mantra ideology. Look at the real facts and learn to evaluate and report what is really happening.

The inevitable result will be a much slower and lower level of existence into the near future, get used to it, this time it really is different.

Why is it that Congress and the Senate can collect their full pay for life after 1 term and retired military only get 1/2 pay. I think that this is totally unfair and needs to be fixed. Perverts and senate aides are allowed immunity from prosocution and paying school loans back, but a down and out veteran gets the shaft if he needs money or food to live. This country has been protected and preserved by the military since our revolutionary days. It seems that the esteemed members of Congress and the Senate are more into looking out for themselves and not the people who gave their all. I am sick of the pigs in Washington and believe now is the time to change the whole thing. We need a true peoples revolution. In the 60's, it was about love and peace. We still need the same things and more, such as food for the poor and jobs and homes for rhe masses. It's morally wrong for the Senate and Congress to recieve better than the people who elected them. It's time now to stand up and let them know we're not going to put up with it anymore.