Despite the BBC's assertions that “The economists among them were Crunch Cassandras; two or three years ago they had predicted that our financial system was headed for a huge liquidity crisis - Nouriel Roubini, Nassim Taleb and economic historian Niall Ferguson.” This is not true, well true, but there are thousands of economists who have been warning of this. They have been warning of this since months before the credit crunch, and several years going back to Nixon’s presidency. These are merely those chosen to be publicized.
The credit crunch is a direct result of the cold war with the former
The debt has finally caught up, and the Ghost of the cold war will cause a draw, the Soviet collapsed and Bush became a communist, dishing out a trillion dollars to the
A slump is a slump, there is nothing anyone can really do, should people buy another MP3 player when the last one is working just fine, throw away last years playstation for this new one when they do the same thing. Why should they just purchase what they do not need?
Nationalization will do nothing except make people believe that the government is doing something, however even if Bank of America is nationalized people still have to pay their debts, or will the government of Obama say that actually personal debts are cancelled, I don’t think so.
What a government can do however is change the economy, change it from a 19th Century Industrial economy to a 21st Century economy. Believe it or not, the age of Petroleum has to go, it was fine for its time, but we now have better technology. Nuclear energy has to stay because it can provide cheaply future energy for breaking down water into hydrogen and oxygen, for lights, its clean and fairly safe, one big accident in trillions of hours can not measure against it.
Change the infrastructure build green cities, green power, that the government can do until the next cycle. If we respect knowledge, there next cycle will prove to be a golden age, lasting well over a hundred years, then like all cycles come to an end and governments will have to restructure to 22nd century technology. The key is to get the world to participate in the knowledge economy then the next age will be a golden age for all humanity. Obviously
Obama has a lot of work, so do the Russians, Europeans, Chinese and Indians in making sure that knowledge is understood by all to be the primary resource.
P.S, blaming America for this crises will not help, when the Chinese, Japanese, Europeans where selling goods to
Nationalization will not work, fix infrastructure to 21st century needs, then the government would have spent its money well, about 3 trillion, it’s a lot.
Take these words to heart, and we will all prosper.