The Savage Truth: These are Humbling Times

There was a time not so long ago when government officials debated which institutions were "too big to fail." Now they're learning the lesson that the global economy is "too big to control."

It is the height of conceit for government and corporate officials to spend their time, and our money, debating priorities for rescuing constituencies. History says they'd be better off standing aside and not trying to turn back the tide.

But like a modern day King Canute, who 1,000 years ago tried to command the sea to turn back, our leaders believe they can stem the inevitable power of nature that has been unleashed, in part by their own actions.

The broad-based Dow Jones Wilshire 5000 index is now down 53% from its high of Oct. 9, 2007. To put that in perspective, the decline roughly matches the percentage drop that took place from March 24, 2000, to the low of Oct. 9, 2002.

That decrease represents $10.4 trillion in market value that has disappeared. And it clearly demonstrates the futility of throwing money at the problem, even $25 billion more to rescue the auto companies. Surely, the illusion of control must now disappear, to be replaced by the reality of working together and using modern technology to manage the impact of the devastation.

There might have been an opportunity two months ago to divert the path of destruction, but Congress missed the moment. Even with lobbyists throwing money at them, and corporate executives coming begging to them, the illogical belief that political decisions can stem the economic tide must be seen for the farce that it is.