Quote:
Originally Posted by Daradon
Good point except for one little thing.
'We just don't know it, so thats why we hire better people then us to make those decisions.'
That.
I think it's become painfully obvious that from traders to investment managers to government policy makers... on average... these people DON'T know better than us. Or if they do, they don't act on it. They're just using it to their advantage and are prone (perhaps even more prone because of their positions) to the same greed and idiocy that can undo us. Only on a much larger, much more important scale.
Not saying they don't understand how things work better than us, that there is no reason to go to business school or get an MBA, or that some aren't doing it for the right reasons. Just saying, we all better remember they are human, and we better put our faith in them and the 'system' only when it shows us it's deserved. We better educate ourselves better. We better ask more questions and DEMAND more answers. We can't afford to take things like that for granted.
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Economics is a funny thing that it isn't like most other science. You can't go "doing thing will get you that" but you can go "this is what happened, and here is why."
To many, it apperently was obvious (Claeren for one had been saying this would happen for since 2006 or 2007) but I think the problem is, they don't act on it. People look at the present and want results now-now-now. Then, everything looked great cause the bubble kept getting bigger and everyone was saying "see! see! see! i am right" and putting short term gains in front of the future.
The same is happening here, IMO. We are seeing too many people go "see see see, look at the stock market and so on, Obama has failed" when he's been in office for less then 100 days. Really, we have no idea if what Obama/Geitner is doing is going to work. But waaaaaaaaaaay too many people here (for instance, Azure in this thread) are ready what he's done has failed.
To say one action will lead to a definate result, or there is only one way... well that is wrong in economics. Economics just isn't that definate of a science. Governments have 2 things they can control to move the economy, and thats what they are doing - otherwise, they don't have any control. If they do nothing, it would be short term pain and probably no recovery and long term pain. If they do something, it will be short term pain, possible recovery and long term pain. They picked option B, say, about $2.4T worth.
