Our “leaders” are employing triage rather than attacking the provenance of our economics.
The real estate crisis is a red herring and manifestation of the underlying economics.

After a meeting, in December 2009, I asked my Representative (Brad Sherman) about our future economics (suggesting that all the wrong things were being done), to which he responded, “I hope it works”.
How very, very sad and infantile!

Last year, I went to six “Obama” get-togethers in January and February.
ABC TV went around the country and taped a number of these meetings and put together a montage of clips. One of the clips was of me, at a Santa Monica venue, saying to my group, “They are doing all the wrong things”.
More than a year later…, nothing has changed.

When leaders tell us that our economy is doing better, they usually suggest that losing 30,000 jobs a month is not as bad a losing 700,000 jobs a month. Whereas that may appear logical, it is irrational when perspective is considered.

My “sponge theory” suggests that the first squeeze of a sponge full of water will eliminate much water, but the 7th squeeze will enable only a fraction of the initial squeeze.

For further perspective, if our economy would create 100,000 jobs for each month during the next five years, we would have an additional 1.5 million unemployed than we had @ February 28, 2010.

Until they attack the roots of our economics, we will continue to descend into the morass.
I call this “economic erosion”.

03/25/10