Speaking on (CNBC’s) “Squawk Box” this morning, (billionaire investor Sam) Zell attributed much of the current economic troubles to fear-mongering and politicking by Democratic presidential contenders Hillary Rodham Clinton and Barack Obama.

“Obviously what we have going on is an attempt to create a self-fulfilling prophecy,” said Zell, chairman of Equity Investments Group and owner of the Chicago Cubs, Chicago Tribune, Los Angeles Times and other companies. “We have two Democratic candidates who are vying with each other to describe the economic situation worse.

“The reality is that if you live on Wall Street and you’re in the credit markets the world couldn’t be worse. If you’re a farmer and you’re getting $25 for your wheat, you’re having a great time. If you’re a CEO and you’ve got a balance sheet that’s bullet-proof, you’re in a great position….”

Zell said that although he doesn’t try to pick bottoms in markets he believes housing has hit its nadir and will turn around this spring as inventory clears out.

As for the credit situation, he projected that once markdowns are out of the way banks will begin to regain their footing.

I have mentioned before that the recent downturn in the markets is partly a response to the possibility of a Democrat, either one of them, capturing the White House in November.  It is also worth remembering the over half of all US households, and over 60% of voters own equities in some form or another.

Obviously, Mr. Zell knows a thing or two about financial and investment matters.  He’s exactly right on this.  No recession.