No matter what the problems the economy has, and they’re numerous and serious, peoples’ perception of such is a separate (?) serious problem.
We’ve known this from the start; after all, that’s why the banks and companies are hoarding cash, and people aren’t spending. Said consumers are tossing around the word “depression” casually, as if it happens when they feel like it’s happening. 40% of Japanese investors think the US is at risk of defaulting. It seems that faith in economics has been lost; this has to have its own impact on the economy.
But we can’t just stimulus our way out of this particular problem, not with the widely varying opinions and needs out there. Not only that, any plan has to make sure that it isn’t just covering up legitimate problems. So what, if anything, can we do about it?