This is not a “cyclical” downturn!
Everything is cyclical if you look long term. If you don’t believe me, let’s discuss this again in about 40-50 years and I’m sure you will agree with me.
I don’t think its cyclical either—it marks a turning point in our civilization. We have reached the point where most people are hopelessly overloaded with debt. Another stimulus package (or two or three) will not change this—it will just be like expecting the heroin adict to straight out by giving him another fix. The powers that be have been pushing homes, cars, gadgets, and debt for the last 48 years—the last 25 of these we’ve had to borrow as a country to maintain our lifestyle.
The simple fact is we are bankrupt now and are liable for many times more than what we currently owe. We can guarantee all we want—the only way we can pay it is by printing money and triggering hyperinflation. Our leaders don’t want to come to grips with this, as it would require real sacrific & lowered expectations from the entitlement class. So they will continue the guarantees, bailouts, and stimulus packages until our economic system (and nation) literally disintegrates.