But in all seriousness the biggest problem facing our economy right now is that the Government and Wall St. would rather throw money at the problem in the form of solutions shaped by their denial, as opposed confronting reality and solving the problem as it actually exists. It's as if despite all the rhetoric coming out of Washington they're actually looking for ways to prop up the old model/bring back the old world, as opposed to accepting reality and working towards building a new one.
Case(s) in point:
It's much easier to pretend that housing prices weren't grossly inflated and can be protected from falling further than it is to just tell people the truth, with respect to prices being overinflated, people having overspent, a recovery being over a decade off, etc.
The government and the banks would rather believe that their problems come from the toxic assets that mysteriously infected their balance sheet, than it being wholesale failure from bad lending standards, business practices, investment decisions, and regulators who were asleep at the wheel.
The thing is you can't solve a problem until you confront/accept its true nature, which means we average citizens get to suffer whilst the financial sector and the government frolic around in fantasy land.
Disclosure: at the time of publishing the author didn't own a position in any of the companies mentioned in this article; the ideas expressed are solely the opinions of the author and shouldn't be viewed as financial or investment advice.