Self-inflicted economic wound?

I was at a round-table discussion yesterday with CEOs of mid-sized companies. The span of their companies varied dramatically: light manufacturing, heavy manufacturing, medical device, advertising services, financial services, legal services, packaged goods, etc.

We all had to give a quick summary of our current business situation. We all had the same report (specific products and services aside): a great first quarter but uncertain about the year BECAUSE OF ALL THE NEGATIVE PRESS ABOUT THE ECONOMY.

It was stunning to me. I can remember in 2001 when we did a similar exercise and the CEOs across a similar spectrum of businesses had real financial hardship to report—it was bad.

But not now. Everyone had good facts to report, yet they were hyper nervous. Perhaps with good reason. Raw material costs are soaring and oil is solidly over $100 per barrel; both could drive up inflation.

But the low dollar is helping exports (one manufacturer even said he was seeing work move from China back to the U.S.) and liquidity is creeping back into the market, as reported by a very knowledgeable banker.

Too much optimism can lead to bubbles. But too much doom and gloom leaves us weak and cowering. I vote for confident reflection of reality.