A comment from here:
“They have been unable to increase lending. Our fiscal operations have been largely targeted on the same markets – the lending markets. Unfortunately, the crux of this problem does not reside at the banking level, but rather the consumer level.”
True, and while I prefer tax cuts and small business targeting (if the government has to have a hand), I am afraid no one or no group can force this economy to spark for some basic reasons:
1. Too much capacity across all aspects of real estate. Not changing any time soon. We overbuilt for a gold rush that was only here as long as some bubble (any bubble) stayed in place. Pop.
2. Since 1995 two bubbles (dot con and real estate) gave everyone the belief that they could get rich overnight. That motivation was huge! It’s gone. What could possibly get the animal spirits of millions gearing up again to get rich? What new bubble? Time travel? Life extension? It sure as h*** is not alternative energy.
3. Our greatest invention, the internet, is arbitraging away typical ‘jobs’ at breathtaking speed. Can’t stop it. Genie is out of the bottle.
Now what? No central planning from whatever group can fix what ails us and if you are waiting for a fix — you are going to lose many years off your life. In terms of getting ahead, it’s every man for himself — whether we admit it or not.