The American economy is in serious danger and it doesn't seem that we do have as many imaginative thinkers to get us out of this mess as we had in the great depression.
I see elements of information in the financial sector that when put together suggests serious weaknesses in the economic structure and where a secondary economic quake could cause an even more dangerous collapse of those weakened business elements.
We have no evidence that the banks are really out of the mess they created. Who is going to eat the losses that are stacked away in those worthless mortgages. Who is holding those worthless papers?
How are ongoing foreclosures going to affect the banks and the economy in the not too distance future? No one seems to know
The stock market, that is perhaps based on as shaky and as speculative ground as the games and economy of Los Vegas, goes down as well as up, and seems also to have little basis for maintaining its present up direction.
On one hand, the politicians say government is not doing what it promised and on the other hand some say that government is doing too much. Some aren't sure but prefer to leave everything alone.
Many of these same people say however, don't leave Iraq and Afghanistan alone, even though these wars may be a serious drain on our treasury and seemingly without end in sight.
One of the conditions that great depression did not have was the effect of a global economy. The unemployment situation is seriously affected by this economy and was hidden while we were filling the various balloons with uneconomic air.
This is the unpleasant side of the economic situation. The most encouraging side is that at the present time at least 80% of those who want to work are working.
Most families have had at least two primary workers and where at least one remains at work they can still hold up and spend money at least on necessities, if not on more.
More than 50% of our workers are working for governments at various levels and most of these remain employed and continue to feed the economy, if only minimally. The health care industry is requiring even more workers.
Many retired are homeowners and actually own their homes, giving some solidity and foundation to an element of the housing market.
The development of a culture of pensioned retirees gives additional rigidity to the otherwise total jelly-like economy. Social security and Medicare is also a great contributor to the system.
Unemployment insurance and disability compensation already in place contributed to keeping us from dipping even farther.
A culture of sending high school graduates to college has led to families saving money for this purpose and along with student loans has keep most students in college and helped off-set the unemployment figures.
Therefore, we are in a different situation than in the great depression. We cannot be sure that all these elements make our situation better in the long run, however. The Chinese are financing an enormous debt for us.
In addition to having to pay for that debt in some manner, their cheaper labor costs attract our production industries, this operating against decreasing our unemployment rate.
Unemployment reduces our consuming capacity and our ability to buy and therefore slows down market potential. Our biggest problem is that of eliminating the increasing unemployment trend and on the other hand that of providing work for the unemployed.
The present market situation is going to be slow at reversing the trend of unemployment, leavlng the upgrading of our infrastructure, perhaps as the main method for increasing the demand for workers.
Now, how do we do that? That's the difficult and main question that needs answering. But even the knowledge of all this, will not eliminate frustration. Only an up turn in employment can help.