You already know that there are no magic bullets to fix the economy. It's a complex organism, beyond the comprehension of most mortals, and is quite able to resist the efforts of one person or of a small group. Rather, it goes through phases, usually several years in length. The heights and depths of these phase extremes can be influenced (or exacerbated) by national policy positions. In face, most efforts toward "economy management" seem to be more addressed to minimizing peaks and valleys and to keeping a steady track. Hmmmm - how's that been working for you?
Nevertheless, we are now past the last low point and are on our way to the next high point. It looks like there is quite a ways to go yet, the economy being the behemoth it is and not willing to turn on a dime (pun intended). Still, nearly all realtors will tell you that things are better than two years ago, that they are busier, and that there is more buyer interest. Another market I follow, the industrial printing business, is seeing the same thing. More people are buying products that require printing (packages, labels, advertizing etc.).
It is comforting to believe that individuals (Mr. Bernanke, for example) can move the economy. In fact, while policies and long-term strategies imposed by the Fed can make the peaks and valleys better (or worse) than if we did nothing, and while Mr. Bernanke's statements and actions can easily swing the stock market on a day-to-day basis, the ECONOMY is not holding its breath, waiting on a pronouncement.
My approach at the moment is to be grateful for the improvement, to look forward to several years of progress, and to put aside some savings for the next rainy season. Will the next trough come 8 or 10 or 20 years out? Can't say. But it will come, and those who do not have a long term view and who begin to assume that the good years will stay forever (remember 2000-2007?) will be the ones who suffer the most.
To quote Proverbs out of context: "Where there is no vision, the people perish."
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