There is a serious danger that the economy will fall into the dreaded "liquidity trap" — no matter how cheap money is, companies and families will not borrow since they are too freaked out about the future. Worldwide financial rescue packages, central bank liquidity injections, and government equity stakes in private banks are all intended to provide the desperately needed liquidity. Now, it is important to get businesses and households to borrow this money. One important step in this effort will be for trusted spokespeople to calm the fears of businesses and families over their economic futures. If the recent past is any indication, we will need a different set of spokespeople for the econmoy, though, to accomplish this.
