The events of the past twelve months have people around the globe asking questions and looking for answers. Is this the end of Wall Street as we know it? Is this the end of the world as we know it? What exactly do all of the government programs do, and what will they mean to our economy?
Obviously no one can give true and accurate answers to these questions. A trained economist should be able to give relatively accurate answers with only one or two variables. For example, if the Fed does x, then the dollar should do y. The problem with our current scenario is there are tons of changes being made in nearly every country, on every continent around the globe. Traditional economic theory is proving to be just that – theory. There are many economists that we follow and respect greatly. We value their opinions. We trust their logic. So how can two, well-trained, well-respected economists have views that can not be father from each other? The answer is easy. We have never been in an economy like this before, we have never seen central banks doing what they currently have been doing before, and we have never seen these massive spending policies before.
If my favorite economists can’t answer today’s perplexing questions correctly, then I won’t pretend to, either. But I will try to take a story or an issue and break it down into plain English, and at least provide the reader with some of my thoughts. Clark’s Thoughts. That is the name of this financial blog.
