Just Fine, Thank You.(ISSUES & INSIGHTS)(EDITORIALS)

Economy: "Pay no attention to that ticker tape on the wall! Everything's fine. Just fine." That seems to be the message from our economic leaders as stocks plunge. All those who feel better, raise your hand.

The latest happy talk came Monday from William McDonough, president of the New York Federal Reserve and a voting member of the Fed's rate-setting Open Market Committee. In remarks to the National Association of Business Economists, he actually used the words "just fine" to describe U.S. economic conditions.

He was also preaching to the choir. The NABE's own forecast, from surveys of 32 business economists, declares growth to be "solidly positive" and predicts an even better 2003.

We heard much the same thing last week from the White House. Treasury Secretary Paul O'Neill, fresh from another appearance with rock buddy Bono, this time on the Oprah Winfrey Show, said the economic numbers "look good."

And, of course, the FOMC itself, in deciding a week ago to leave rates alone, said the easing it began in January of 2001 and ended a year later should suffice to improve conditions "over time."

Meanwhile, the stock market continues its sickening descent as the ticker they want us to ignore spits out news that couldn't be more at odds with their upbeat assessment.

Item: The Chicago Fed's national activity index of 85 national indicators dropped for the second month in a row -- raising the odds that a second recession will hit.