What is with the economy

The stock market is going nuts with huge swings daily and everyone is calling for the Federal Reserve to lower short term interest rates again. Part of the problem is that everyone thinks that will solve the economic problems that have been coming for a while. Everyone is afraid to say the obvious and that the real problem is that no one wants to do the tough love thing and make people pay for the stupidity that they helped create. The sub prime problem is a big factor and the institutions made money are looking for ways out of their mistakes. Some can't because the got in too deep. CitiCorp just had to hook up with Dubai for cash. Huge losses will do that to a company. They got greedy as did others. What were they thinking! Anyone with a brain must have realized that the party could not go one forever. Now everyone, from the poor schnook with a mortgage he/she could not really afford to the banks don't want to pay.
The economy is going to have face the music eventually, but when is the unknown factor. When it does happen it will cause a lot of pain all around. There are other things that are contributing to the economic problems that we are going to have to face in the future but this is one of the big ones.