The economic crisis has the country flailing.
That’s not a controversial statement. Since early 2008 the federal government has been trying various, and expensive methods, of jump-starting the economy and propping up the housing market. Since December 2007 the Federal Reserve has created an alphabet soup of programs to stabilize the credit markets.
So far all of these attempts to stabilize the economy have had mixed results at best. Trillions of dollars have been spent and yet the economy is still crippled. Why?
The problem is that the people in charge are asking the wrong question. They are asking, “How do we get back to where we were before this crisis?” The question they should be asking is, “How did this happen?”
Unless we understand what happened and why, we will never be able to fix the economy.