How Can You Fix It, If You Don’t Know What Is Broken?

This article — Our Epistemological Depression — makes a lot of sense. It’s been my feeling all along that the bailouts and stimuli were frantic panic motions. No, make that emotions. I don’t see any evidence that any of the 535 members of Congress really have a clue what’s happened, much less why.

Barack Obama and his advisors and cabinet haven’t done or said anything much different. Should we call it Do Something Syndrome Even If It’s Wrong Syndrome? DSSEIIWS?

I think we’re screwed because our leadership does not know how to lead, merely that they must react, even if their reactions make the situation worse.

In Too Big To Fail? Or Too Big Not To Fail? I wrote:

What about that old saying warning one not to put all their eggs in one basket? Would heeding this have helped the “too big to fail guys” in fending off disaster?

Muller explains how this strategy, when carried to extremes had “…unintended and unanticipated negative consequences. The purported virtues mutated into vices.”

There was a belief in the financial sector that diversification of assets was a substitute for due diligence on each asset, so that if one bundled enough assets together, one didn’t have to know much about the assets themselves.

6 thoughts on “How Can You Fix It, If You Don’t Know What Is Broken?

  1. I am a firm believer in learning from mistakes and moving on. Lots of things were done wrong, it is overwhelming trying to pin point all of them so I think that is where so many get confused and overtaken.

    The bottom line is our free market system is designed to allow those businesses and bad decisions to fail. We are in a recession and we can’t fix that. What’s done is done, all we can do is move forward in a new direction and to ensure that past mistakes are not repeated.

    My personal preference was to let those businesses fail and to allow for new and better businesses to spring from the ashes. If we know what was done wrong we can focus on rewarding those business men who do NOT makes the same mistakes.

    Thinking that all this can be fixed is silly, it is unfixable and done. We are in a big mess and the more time we spend trying to fix it the longer it will take to move forward. We need to focus on how we can move forward.

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