First, I don’t believe there is someone sitting in a backroom somewhere who has the silver-bullet that will solve the economic crisis. However I do believe there are some actions that could be taken by either governments or central banks that would be better for the economy on both mainstreet and Wallstreet than other actions (or inactions).
When I look at Congress and the Senate I don’t see how they could possibly be qualified to come up with the ideas for a solution, especially an ongoing solution requiring course adjustments along the way.
When I look at Wallstreet, where all the brightest economic minds are, I don’t see anyone who has spent there career thinking about how a group of stakeholders go about rescuing a system that is failing.
I’m not asking who should take action, I’m asking who is even capable of understanding the economic data and the levers that control the economy to
(1) even define the problem in the first place,
(2) define what a “solved” problem would look like
(3) devise a plan to move from problem to solution and
(4) be capable of understanding if we were moving in the right direction as the plan was being implemented.
Edit: Sorry, posted to wrong forum and don’t know how to switch it.
This does belong in the Lavender room, but I’ll bite anyway.
Who can “solve” the economic crisis?
Easy. Us.
We didn’t get here over night and we won’t fix it over night. We also won;t correct our own mistakes by sticking our head in the sand and not participating in the solution.
As a culture, Americans need to enter a new era of personal financial accountability. Taking out loans that are too large, granting loans that are not tenable on the part of financial institutions and lenders.
Also, we need to particiapte in the economy. Buy what you need, buy what you want, but buy *what you can afford. *Keep debt in reasonable check. Do your job as if your livelihood depends on it- it does.
I see the lights on very late at night at Ford Motor Company right now. They are working on solutions to the problems created by years of complacency. They are working hard.
If there was ever a time when this basic axiom of survival applied, it is now: “Don’t do nothing… Do something.” The choice now is to simply make better economic choices at the personal level and continue to participate in the econmy, albeit in a more responsible manner. That’s my take at least…
What I find extraordinary about all this is the lack of financial and economic knowledge that people have. And yes it can get very complicated, but what I am talking about and what you are talking about, is basic 2 + 2 =4, type of stuff. It’s not rocket science. It’s about taking personal responsibility for what you do in the economy.
When I look at Wallstreet, where all the brightest economic minds are, I don’t see anyone who has spent there career thinking about how a group of stakeholders go about rescuing a system that is failing.
Wall Street does not have the “brightest economic minds”. The best and the brightest are the academic scholars in economics, like professors at the colleges and universities. Always wondered why they don’t get a few economic scholars to weigh in and recommend a solution.
The two are not mutually exclusive - one of the most spectacular (if thankfully discrete) wall street flameouts was LTCM. Their initial success was in no small part due to having two nobel prize winners on the board and trading on an incredibly academic model.
Greenspan had plenty of booksmarts and was “shocked” when the home ownership craze he helped facilitate blew up in everyone’s face. Trawling universities may or may not help overall but its not 100% clear to me that anyone or any category is better or worse equipped to help at this point.
I don’t count Alan Greenspan (hah hah). But yes, there are bright minds in academia as well as on Wall Street, Main Street, and whatever Street you live on. One thing is that Politicians can’t solve economic problems. Too much of a vested interest in party lines, winning over constituents, etc. instead of trying to do what’s best for everyone.
Create more jobs, reduce unemployment, get the DOW back up. That should make everyone happy…right? \
The first two are pretty much the same thing, but the person that works at the EDD loses their job if that happens, as well as all other govt. employees that service those 10+ million Americans…And all those people shorting the market won’t be happy if the DOW surges…I don’t remember who in my youth said this to me, but there was never a truer statement. “You just cannot please everyone, so just go do what you think is best”.(-;
I believe that is what Obama is trying to do, in a way that can get through the long built up walls and networks of Washington, and still resemble his original plan…I go back to my original answer on this question, Time…How much is up to us…
.And all those people shorting the market won’t be happy if the DOW surges…I thought shorting was currently banned in the US? Or is that just on financial institutions?
This does belong in the Lavender room, but I’ll bite anyway.
Who can “solve” the economic crisis?
Easy. Us.
We didn’t get here over night and we won’t fix it over night. We also won;t correct our own mistakes by sticking our head in the sand and not participating in the solution.
As a culture, Americans need to enter a new era of personal financial accountability. Taking out loans that are too large, granting loans that are not tenable on the part of financial institutions and lenders.
Also, we need to particiapte in the economy. Buy what you need, buy what you want, but buy *what you can afford. *Keep debt in reasonable check. Do your job as if your livelihood depends on it- it does.
I see the lights on very late at night at Ford Motor Company right now. They are working on solutions to the problems created by years of complacency. They are working hard.
If there was ever a time when this basic axiom of survival applied, it is now: “Don’t do nothing… Do something.” The choice now is to simply make better economic choices at the personal level and continue to participate in the econmy, albeit in a more responsible manner. That’s my take at least…
I don’t think it could have been said any better.
This does belong in the Lavender room, but I’ll bite anyway.
Who can “solve” the economic crisis?
Easy. Us.
…
Great post, and I especially appreciate the sentiment: ** We also won;t correct our own mistakes by sticking our head in the sand and not participating in the solution.**
But…I’m sure its not that simple. I think many of us have always lived the way you describe, and those that don’t will continue to live as far beyond their means as they can get away with in the short term.
Also, some of the biggest problems seem to have been caused by actions ranging from outright fraud (e.g. mortgage brokers) to grey area criminality on wall-street like sham-investment insurance being called creative financial vehicles - so part of the solution seems likely to require changes in regulatory policy (either the rules themselves or the enforcement of them)
There also seem to be short term issues like the freezing of the credit markets that at least appear to require action on a scale that can only be taken by governments and central banks.
As a big fan of personal responsibility I’m not dishing against your sentiment, it just seems that the best outcome likely requires government level changes (or funding), yet there seems to be a huge disconnect between the people who are capable of making these changes (Congress etc…) and the people who understand what changes need to be made.
Which gets me back to the original question of who are these people who can even define the problem and the solution?
BTW I even tried deleting this post and starting over - never post before your first coffee.
