Humpty Dumpty sat on a wall.
Humpty Dumpty had a great fall.
All the king's horses and all the king's men
Couldn't put Humpty together again.
Everyone is familiar with the classic Humpty Dumpty nursery rhyme. What does it have to do with the economy?
For the answer, here is a must watch video clip featuring former Chairman of the Federal Reserve and current Chairman of the Economic Recovery Advisory Board, Paul Volcker:
There is an astounding amount of wisdom displayed in this rambling seven minute speech. Here is one of the many money quotes:
"One aspect of capitalism, which I will call relatively unbridled financial markets operating on a global basis has broken down, and it's broken down in a way that I don't think can be replicated in the form that it took earlier"
Clear as day my friends. Humpty Dumpty had a great fall and all the king's horses and all the king's men couldn't put Humpty together again.
Our global economy was built on an unstable foundation and as a result the economy now lays in shambles. No amount of quick fixes will put the economy back together again. A new economic foundation is required for long term, stable growth.