Our Economic Problems

           In the news, I am guessing you have seen the endless articles and debates about the economy.  How can we fix it, who can do it, and even can it be done?  I argue that there is no solution.  The economy is a monster that can be swayed one way or another, but no one insitiution or government can make a move to "fix" the economy.
        Let me give you an example, when the Federal Reserve makes an announcement of possible rate hikes in the interest rate, there is major shifts in the stock market.  People make purchasing decisions in the stock market based on interest rates, jobless rates and reports, and presidential declarations.  And, most important of all, stock purchases are largely based on psychology.  Fear of losing money, anticipating the changes in the market, and basic human instinct are a big part of the stock market.  The stock market itself is proved to be the engine behind the economy, yet there is no clear direction of the market and no one way to control it.

Let's look at  all of the failed attempts to save the economy:

• Wallstreet Bailout
• Home Loan Bailout
• TARP

We have all heard the fraud involved with the money given, and how bailed out companies continued to give CEO million dollar retirements, and how these same companies pay out millions of dollar in bonuses. 

So what does work to "fix" the economy?  I say nothing.  The economy is so big and complex thatno one entity can fix what is wrong.  The natural law of economies is that we go through phases of boom, bust, boom, bust, then boom again.  This recession is an effect of the long period of buying overpriced houses, refinancing houses to buy an escalade, and just being financially rediculous for awhile.