Jackpot in Spacetime

 h/t Theo

{link » Lesson From a Crisis: When Trust Vanishes, Worry}

“But in the end, this really isn’t about Wall Street. It’s about reducing the risk that something really bad happens. It’s about limiting the damage from the past decade’s financial excesses. Unfortunately, there is no way to accomplish that without also extending a helping hand to Wall Street. That is where our credit markets are, and we need them to start working again.”
[Read entire article here.]

Here's what I think (though I reserve the right to reevaluate as the scenario unfolds, or, perhaps more accurately, unravels). This is a very complicated situation. I know this seems obvious, but I repeat with emphasis: This is a very complicated situation.

What makes this so complicated? Many factors:

1. No one is immune from the fallout — no one!
2. Everyone is fearful to a lesser or greater degree. We are on the verge of panic, as clearly indicated by, among many other indications, the wild volatility in the markets.
3. The general election is only weeks away, and the financial crisis is politicized to the extreme:
   
   1. The Presidential candidates recognize that this issue is crucial to their success.
   2. All House Members realize this issue is crucial for their reelection.
   3. 1/3 of all Senators realize this issue is important to their reelection.
   4. Our government leaders are political animals to the core and find it extremely difficult, if not impossible, to consider the people's business ahead of their personal aspirations.
   5. Many of our leaders are not as bright as they think they are.
4. No one trusts anyone else, with very good reasons:
   
   1. Our political affiliations are polarized in the extreme.
   2. Everybody exaggerates; many lie. Hyperbole is the new witty.
   3. The complexity of our (global) economy is beyond anyone's ability to fully comprehend, yet many think they do comprehend it, and many more want (desperately) a simple explanation. It does not, and will not compute.
      
      1. Ignorance is widespread.
      2. Ignorance of economic principles is rampant.
      3. The complexity of international finance is less understandable than the solution to Fermat's Last Theorem.

I could go on, but you get the idea, I hope. It's dire and it's complicated.

To recapitulate: Although most people, I dare say, want a solution, a solution, if it exists, is very elusive. I strongly doubt that a unique best solution exists, and I doubt even more that anyone is capable of discovering what one might be, much less so capable of persuading a sufficient number of power brokers to have it properly implemented. Selfishness, irresponsibility, ignorance, and all manner of excess have brought us to this point. And unfortunately, this point happens to coincide with extremely bad timing. It is the proverbial jackpot in spacetime.