The Big Picture – Part 1 – How did we get here?
Posted January 28, 2009
As the environmental, financial, and economic situation continues to deteriorate around us, we need to step back and take a look at the big picture. We need to see how we ended up in this economic mess, what the government response has been, and what we can do to climb out of this hole that we have collectively dug ourselves into. We are starting to see that our perceived prosperity has really been an illusion and was totally unsustainable.
There are many factors in play here from greenhouse gasses, collateralized debt obligations, subprime mortgages, credit default swaps and other technical terms that can both illuminate and confuse the issues. Too many of our “experts” have provided the nation with obfuscation, double talk, and circular logic in their efforts to avoid providing explanations on why they failed to both predict and warn us of the problems we are now having. How could these “experts” have missed so many of the warning signs of the gathering storm? The goal of this article will be to provide a simplified examination of the big picture. It will be broken into 3 parts, the first will examine how we got into this mess, the second will examine the government’s response, and the third will provide suggestions on how we can start the process of rebuilding this nation’s ability to create wealth and prosperity for all.
Also published in Market Oracle, May 2009