I knew we had a wee housing bubble because I knew that not enough people possibly had enough money to really afford that many houses at bubble prices. Similarly, I know the economy is going to continue to recover slowly, if it all, because people don't have jobs and money. I also know that if you deliberately enact policies with the obvious consequences of making large numbers of your population jobless, such as firing large numbers of public sector workers, then newly unemployed and broke people aren't going to spend any money because they don't have any.
The people who rule the world have jobs and money. They don't know what it's like to go from living paycheck to paycheck to living with no paycheck. They support the policies that they do because they cannot comprehend the obvious consequences of this.
Probably they're evil, too, but we'll never fully resolve that question...
