Several news articles in the last few weeks point to a three-pronged reason why the economy, and particularly the real estate market is so (let's be kind) lackluster. The argument goes like this:
Prong one: falling product sales led to falling corporate profits that led to layoffs, giving a new unemployed class.
Prong two: this large group of newly unemployed led to missed mortgage payments that led to foreclosures that led to falling home prices that led to less activity in home construction and sales, which led to even more unemployed.
Prong three: The reasons leading to the layoffs in prong one also result in fewer jobs available for 20-somethings trying to launch, and thus they stay at home and further reduce home demand and home prices.
These three 'prongs' almost make a satanic-style pitchfork.
I confess, this reasoning makes a lot of sense to me. It kind of flows in a logical way that seems to address most of the observed effects we are seeing in society. The only thing remaining is what to do about it.
The whole Occupy Wall Street movement doesn't seem to address any of the issues. It strikes me more as organized whining, except it's not too organized. Is there really anything worthwhile to do, or is it more of a massive societal flu - no treatment will work except time, rest and drinking plenty of fluids.
If there's something productive to do, by all means let it be done by whoever has the vision, power and will to do it. It might be government, corporations or individuals - I just don't know.
It might be that nothing useful can be done, and any governmental action will cause more harm than good.
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