Here's How To Fix Things

Here's the most succinct, intelligent solution I've seen to our current problems...from Mish...

What To Do About The Liquidity Trap

Here's what to do about the liquidity trap: Nothing. The concept of liquidity traps is imaginary. Home prices are too high, they need to correct. There are too many houses and stores so we should not encourage more building. Savings should be encouraged, not discouraged. Overcapacity needs to be worked off not fueled. Bankruptcies are part of the solution not part of the problem.

The real trap is doing something as opposed to nothing. Quantitative Easing and ZIRP [zero interest rate policy] did not help Japan and they will not help the US either.

The central bank simply cannot force additional credit down the throats of prospective borrowers, nor should it try. Attempts to do so will only prolong the agony while punishing innocent savers, especially those on fixed incomes.