Market Madness


Pages: 1 2

Ferrara also administers a well-deserved smack to Keynesian economics champion Paul Krugman, who claims the Obama administration hasn’t spent enough money stimulating the economy. Krugman uses WWll spending levels as the basis of his contentions. Ferrara explains what that means in actual numbers:

Federal spending in 1943 was 43.6% of GDP, with the federal deficit at 30.3% of GDP. In today’s equivalent terms, that would mean a federal budget of $6.54 trillion, or over 70% higher than today, and a federal deficit of $4.55 trillion, almost 3 times higher than today.

In other words, Krugman countenances a one-year deficit nearly equivalent to the 4.9 trillion years of debt accumulated by the Bush administration over the course of eight years. The same Bush administration Democrats and the administration blame for driving the economy into a ditch. So why continue the borrowing madness? “[B]ecause [Krugman's] devotion to the doctrine is religious, not intellectual, and so it can’t be falsified,” writes Ferrara.

Such religiosity was exemplified by the barrage of anger directed toward the Tea Party movement for daring to suggest that such economic policies are completely misguided. “Terrorist” was the word used persistently by the same progressives who were calling the supporters of fiscal sanity and limited government “racists” leading up to the 2010 election. Why the ongoing vituperation? The Wall Street Journal‘s James Taranto explains:

Obama’s failure is the failure of the liberal elite, and that is why their ressentiment has reached such intensity. Their ideas, such as they are, are being put to a real-world test and found severely wanting. As a result, their authority is collapsing. And if there is one thing they know deep in their bones, it is that they are entitled to that authority. They lash out, desperately and pathetically, because they have nothing to offer but fear and anger.

Along with the same tiresome solutions. Thus it was completely unsurprising when the president once again reiterated his commitment to the idea that “economic growth, making ourselves more competitive, isn’t just about cutting programs. It’s also about making investments in our people.” As if on cue, Democrats were recommending new job training programs to help the “long-term unemployed get back to work,” due to the fact that their “skill sets no longer fit the needs of hiring employers.” Perhaps that is due in part to the fact that some former workers have been eligible for 155 weeks of unemployment benefits. Benefits the president has expressed a desire to renew. The CBO estimates extending those benefits through 2012, aka the election campaign, would cost $45 billion. In borrowed money.

Jobs? Nowhere to be found. Why? A partial answer can be found in a memo put out by Senator John Barrasso (R-WY) showing how many rules, how much red tape, and how many cancellation delays of existing regulations have been moved forward by the Obama administration — in the month of July alone. It is a sobering look at an administration dedicated to command-and-control policies. It is those policies, along with the uncertainties created by ObamaCare, that make businesses hesitant to hire.

Yet it is more than that. This administration in particular and the Democrat party in general never miss an opportunity to vilify the wealth-producers of this nation. It is a vilification so persistent and ongoing that the producers have, for all intents and purposes, gone on strike. And it is a strike driven in large part by an unprecedented fear of government, emphasized by both Home Depot founder Bernie Marcus and Las Vegas hotelier and self-professed “Harry Reid Democrat” Steve Wynn.

Are we entering a double-dip recession? All of the above combined leads one to the most disturbing conclusion of all: under the various banners of “social justice,” “spreading the wealth around” and “fairness,” incentive is being destroyed. It is being destroyed by a progressive movement which believes the stoking of envy, class warfare and guilt, all of which must be promoted and/or controlled by government itself, are sufficient substitutes for incentive. They are not, and they never will be.

On more than one occasion, Mr. Obama has wondered aloud what government can do to get America working. The answer is simple, even as it eludes progressives entirely:

Get government out of the way and let Americans be Americans again.

Pages: 1 2

  • mlcblog

    I love your conclusion. Get out of the way, Mr. Obama!!

  • Gamem

    You totally left out Obama's war on oil. Here is an excerpt from the article The Kamikaze Obanomics of John Maynard Keynes
    The Obama administration along with radical environmentalist activists have blocked development of much of America’s oil resources when oil may be the answer to rescuing the U.S. economy. The magnitude of the loss this creates for the American economy was described by Paul Driessen who wrote:

    Developing just our off-limits oil and gas resources in the ANWR, OCS and Rockies could generate over $1.7 trillion in government revenue and create 114,000 new jobs, a recent ICF International study concluded . . . Developing all US oil and natural gas resources on federal lands could generate $4 trillion.

    The American Energy Alliance and other experts say the benefits would be even greater. And this is just conventional oil and gas revenue. It does not include trillions more in revenues from oil shale, tar sands, methane hydrates, coal, uranium and other deposits that Congress, bureaucrats, judges and green activists have conspired to put off limits to the American taxpayers and consumers who own them.

    • scum

      He opened up off-shore drilling, then Cheney f-ed it up. Frickin' Cheney, destroying the world one scandal at a time. Let's hope Nigeria finds him to answer to criminal charges there.

  • alexander

    600 pound gorilla nobody apparently see:
    more and more businesses go out of US to pay workers 5 cents per hour instead of $20 or more. Unemployment is much higher than reported. All economic indices are sheer nonsense – goods sold in US, at US prices, produced in countries where similar goods cost a fraction of what we pay.
    Solution?
    Huge import taxes and businesses come back. But nobody like facts.

    • Rifleman

      You're still playing their silly game, and trying to correct with punitive measures, which won't work. New and existing regulations still make it almost impossible to manufacture here.

    • aharris

      Ridiculously high labor costs + ridiculous regulatory costs = impossible to make a profit producing most goods in the US. You can't punish businessses into doing business here; they'll go out of business first or simply stop selling their goods here altogether.

  • StephenD

    Reduce regulations. Open up for drilling…ON LAND. Do away with the Capital Gains Tax. Within a week this country will be on the road to recovery with corporations and JOBS pouring back in.
    After these initial steps, resolve to secure a more workable tax structure. It should be as simple as a flat consumer based tax. You want it, pay the tax.
    Before you know it, everyone that wants a job will have one and then the taxes roll in for the Government. Talk about "increased revenue."

    • megapotamus

      Yes, all this talk about off-shore drilling is fine but we drill off-shore not because it is easier technically but because new land sited drilling is made uneconomic by regulation, lawsuit and PR assault.

  • tagalog

    In what possible universe would the debt ceiling deal be seen as reassuring to the rest of the world?

    • aharris

      Liberal bizarroverse

  • Rifleman

    All the new regulations almost guarantee further recession.

    • scum

      Remember, Rifle: Deregulation CAUSED the recession, remember??

  • aharris

    Streamline the regulatory process. Most of the agencies today are unecessary as are most of their regulatory burdens. It's a win/win. Not only would you reduce the size of the bureaucratic behemoth reducing the fedeal budget, but you also free up the market allowing business to do what it does best.

    • scum

      We've already deregulated, and we reaped the benefits. One only has to look at the Gilded Age for a similar example: Boom and Bust capitalism. That's why there were no significant dowturns during the Progressive Era. Not until the rampant greed, easy credit, and idiocy of the 20s did we see the Big One in 1929. Don't think it can't happen again. The Tea Party has just about guaranteed it.

  • TexExpatriate

    The author's conclusion: "Get government out of the way and let Americans be Americans again." Unfortunately, Americans are going to have to put government out of the way. It would be wonderful if it happened at the ballot box, but I think anyone who believes that is an absolute Pollyanna. It's going to come through the process of Nullification and Secession or force of arms.

    • scum

      Government has never been 'out of the way.' In reality, huge government giveaways to BIG RR's is what was at the core of the 19th Century Boom.

  • megapotamus

    Carney's admission that no, the White House doesn't really create jobs, is a shuddering cannonball through the mast of Liberalism as opposed to hard socialism. The Liberal view is that we can have both: tight control on the economy with redistribution at their hands AND free-market style prosperity. What is always the stumbling block? Having the right people call the shots. You couldn't get any more "right" than Obama and yet here is the WH ferret squad saying even he is impotent and there is no chance, is there? that Carney is of the rez on this one. His every fart is cleared through legal. I would wonder aloud why Team W never made this simple observation that is, after all, in line with their stated principles, unlike the Obies. But we know. He does not really agree with it. What remains to be seen is what the policies friendly to job creation are, per the Obama White House. Presumably, this ain't it.

  • WilliamJamesWard

    There is no solution obtainable as long as our economy is being destroyed
    intentionally by a subversive President and his thieving minions. their leftist
    agenda is to reduce America to third world status and strip all of our wealth
    off into pockets they choose for the elite leftist contumelious continuum with
    no form of redress made possible………………..William

    • scum

      Actually, everything points toward the S&P downgrade being carefully organized by the Tea Party. It's the extreme Right that intentionally pushes the country to the brink. Look at the record: Remeber all those CEO's flying to DC a few years back begging for handouts? THEY WERE REPUBLICANS. The FACT is, that Obama bailed out the rich, and bailed out Capitalism.

      • WilliamJamesWard

        The government treats all 300 million as herd cattle and we are shorn and
        culled at their will in a whirlpool of unidentifiable shuck and jive where we
        are stripped of as much as we have without killing us. Tea Party I think
        is not there long enough or strong enough to bring government back to
        the Constitutional rigors they claim, that I can understand but the
        Democrats and Republicans are the hands of the beast that is choking
        the life out of us. We can do better than the 545 people governing America,
        we outnumber them, they stick it to us and tell us how grateful we should
        be as they are of course doing what is in our best interist…………….William

  • http://www.sunclarathai.net ซันคลาร่า

    Best site and cool blog. I want to see anything and i find complete.Thank for your blog.ซันคลาร่า

  • Chezwick_mac

    I continue to be mystified by the timing of the housing bubble crash in September 2008, just a month and a half before a critical national election. Nobody seems to remember this, but John McCain was leading in the polls right up to the crash.

    We all know the extent of George Soros' currency manipulations in years past. And we all know the extent of Soros' emotional and monetary investiture in the Democratic Party in general and Obama's election campaign in particular. Was the timing coincidence? I don't know…but healthy skepticism ought to have us thinking….which brings me to my point…

    I love America and I want what's best for my country. And that's why I think it would be a catastrophe to see the economy suddenly turn around next spring and start a rapid expansion…just in time to insure Obama's re-election next fall.

    I know it sounds cold…and I know people are currently hurting. But I also know that Barry is hell-bent on "transforming" America…and what he can't accomplish during his first term, he'll pursue with a vengeance should the American people endow him with a second.

    • Amused

      You will be continue to be mystified Chezwick , because you haven't the brains to figure it out . The warning signs went up long before the election . Were you living under a rock Chezwick ? A house that went for $120k in '94 was in 2007 going for $ 450 k , did that seem normal to you ? Lots where I live were going up $5-15 k a WEEK ? No , Chezwick , you dont sound "cold " …you sound pretty dumb . If that wasn't benough , shows like "Flip this house " were only confirming that the housing market was in a growing bubble , that was bound to burst ……but you couldn't detect that ? Enjoy your "conspiracy delusion " .

      • Chezwick_mac

        You obviously didn't read my comment with sufficient attention…or perhaps you're just immersed in the very thing you accuse me of…ignorance.

        If you'll notice, I acknowledged in my very first sentence that there was a "housing bubble". My question was, why did it pop in September 2008, just before the presidential election?

        PS – How is it a man of your years and experience comes off as such a juvenile?

        • Amused

          How is it a man of your "alleged " intelligence could come to such ridiculous conclusions ? Do you really think that "someone made that bubble bust at a particular time " ? Really Chezwick , you diminish yourself with such foolish statements .The bubble collapsed under it's own weight , sooner or later some investors were going to wake out of their greedy stupor and realize that the securitization of mortgages ,and payments to investors was nothing more than a gigantic pyramid scheme , an illusion created by Wall Street ,that catered to the lowest common denominator – GREED . Why Sept .2008 ? Why not ? Are you old enough to Remember the Banking Loan Scandal of the 80's with Keating ? Why'd it break when it did ? Another "mysterious plot " huh ?

          • Amused

            …and the TRUTH of the matter Chezwick , is that the bubble burst well before Sept .2008 . but I guess that's a detail and FACT , that gets in the way of your "mystery" plot .

          • Chezwick_mac

            Wrong again friend. Interest rates had indeed been rising in 2007 and housing prices began their fall, but the collapse and the monetary crises began in earnest only in Sept 2008, a month and a half before a critical presidential election.

            As I clearly specified earlier, I don't know if the timing was coincidental or not, but it was certainly propitious.

          • Amused

            well Chezwick , if that is going to be your line of reasoning , whose boy was in the Fed ? Whose boys were in the SEC ? The rise in interest rates precipitated the collapse , as the balooning mortgage interest rates written, outpaced the rate at which people could flip out of the house they couldn't afford from the getgo .That was key to luring investors into buying the securitized bulks of mortgages . Derivitaves were invented to insure the investment firms against loss , yet they were not by law "an insurance entity " they did not possess the liquidity to cover their "insured " losses , and this by merely changing the wording in their description . EVERONE was in on it , from the SEC , Wall Street Moguls , Banks , Investors , home buyers and home sellers .

          • Amused

            The timing was coincidental , but absolutely INEVITABLE .The speeding train was going to crash , it was just a matter of – at which turn was it going to leave the rails .C'mon Chez , you dont recall all the news of where housing was most expensive and in what cities and regions ? And the unusual disproportionate prices ? The types of balloon mortgages being issued ? This went on for several years, through both Bush Admins . and no one took notice ?

          • Chezwick_mac

            "The timing was coincidental , but absolutely INEVITABLE"

            The first half of that statement may or may not be true….the second half surely is.

            It's also true that Bush Administration officials went to Congress during his first term to sound the alarm over Fannie, Freddie and cheap lending practices…and were browbeaten by Barney Frank…who accused them of trying to prevent blacks and Hispanics from owning homes. Bush's political cowardice precluded an effective response to the budding crises, but it was LIBERAL policies – centered around the CRA – that ultimately fostered the creation of the housing bubble.

            PS – Are you still in denial about being a lib?

          • Amused

            If possesing COMMON SENSE results in being called a liberal , is what ? Denial ? Are you serious ? And where did you get that tripe about "Bush sounding an alarm" ? Please elaborate ? Did you mean Bush' toothless incompetent watchdogs in the SEC ? An Army of Barney Franks , could not force banks to go against their own tried and true practices of loan approval . Now you are showing your age , obviously you're not old enough to know what an applicant for a mortgage had to go through in the 60's 70'and 80's .Those rules were abandoned by greedy Banks not wanting to miss out on the feeding frenzy .If the Bush Admin .did anything at all , it was purely lip service and you know it . Liberal Policies ??Dont make me laugh , it was purely capitalistic misbehavior based in greed , with the politicos looking the other way , ignoring the warning signs . This was history repeating itself in that this is what the Banking Loan Scandal of the 80's was doing , but on a much larger scale . You're looking for a scapegoat and found one in Frank …but that's part of your parroted ideological rhetoric .

          • Chezwick_mac

            Here are two short films that encapsulate the housing crises and Frank's role in it. Watching them will consume less than 15 minutes of your life. Please do, you might actually learn something for a change.

            One is from Fox News (God forbid!) in which they draw a perfectly cogent timeline of Bush Adm. efforts to reign in Fannie and Freddie…and Frank's efforts to obstruct. The other is the man in his own words…denying there is any problem om the first place.

            Now, I've acknowledged that Bush's cowardice resulted in inaction, but it was the CRA – a Clinton era initiative, that laid the institutional groundwork for the bubble…and then Frank's obstructionism over the Bush Admin. feeble attempts to address the problem, that precluded effective resolution.
            http://www.youtube.com/watch?v=LPSDnGMzIdo
            http://www.youtube.com/watch?v=iW5qKYfqALE&fe

            I eagerly await your response….(though it is utterly predictable).

          • Chezwick_mac

            AMUSED: "An Army of Barney Franks , could not force banks to go against their own tried and true practices of loan approval "

            RESPONSE: Actually, it was the CRA that forced banks to go against their own tried and true practices of loan approval. Apparently, you know very little about the issue.

            More evidence for the assignation of blame…
            http://www.youtube.com/watch?v=_MGT_cSi7Rs&fe

          • Amused

            Apparently all you know is what others put on your plate . Save your blame game and Fox spins , I heard it all . Whatever may have started in Clintons Admin , there were 8yrs of Bush that could have stopped it , that is if he was "aware " of a problem as you contend . and if so did little or nothing about it .

          • Chezwick_mac

            I KNEW you weren't open-minded enough to even consider an opinion that didn't validate your own. I guess interminable adolescence is hard to overcome.

            The Fox piece actually shows footage of Bush's Treasury Secretary imploring Congress in 2003 to set up a "world-class regulatory body" to monitor Fanny and Freddy…because their huge size had become a threat not just to the housing market, but to the overall economy. Your pal Barney is shown repudiating Sec Snow, insisting there was no prob at Fanny and Freddy.

            I've conceded repeatedly that the Bush Admin. was afflicted with political cowardice. But I maintain that it was LIBERAL policies and politicians that facilitated the housing bubble, just as it was LIBERAL policies and politicians that have facilitated the debt crises.

    • scum

      No secret Chez. It was bound to happen. We haven't had a healthy economy since the augmentation of deregulation in the 80s. Since then it's only been boom and bust. The Right wanted to deregulate the housing industry. In short, this allowed brokers to sell properties to ANYONE, and pass the buck down the line with responsibility. For anyone with a brain, by the mid-2000s homes now required an average of a 3 income family. When the bust hit, idiots on the RIGHT AND LEFT kept saying, "It's almost over, it can't get worse." In CONTRAST, I told my class of students in JULY, 2008: "IT"S JUST STARTED, IT"S GOING TO GET WORSE." Sometimes it hurts to be right.

  • Amused

    Well , evryone;s leveling charges and accusations across the aisles at each other . Uncompromising "patriots " concerned more with blame for this mess , than cleaning it up . So much so that the US Govt . is now a dysfunctional gackle of morons , who are capable of only invectives against each other , and unable to compromise and solve problems . Standard and Poors downgrade reflects this very situation.
    SO LET US EXTEND OUR THANKS TO REID < McCONNEL >THE TEA PARTY>THE DEMOCRATS AND THE REPUBLICAN AND CONSERVATIVE DUPES, who by their rancorous "patriotic behavior " have inflicted another wound to the country they allegedly "claim " to "serve " …..yup reeeeeal pariots , who've totally rejected that American notion of compromise for the better good of the country ,

  • Amused

    So now we've taken the next step towards another crisis , MORE people will be put out of work , ironically the fortunes of the rich will be diminished to a higher degree than any tax increase , any confidence on the part of investors will be diminished , as "the DEAL " is nothing more than extending the MESS beyond the election , due to contentiousness between these political bums . This very morning the ALL IMPORTANT BLAME GAME is ramping up , and taking precedence over all else . So lets raise a glas to all our "patriotic politicians " for our new AA+A rating . You worked hard for it , and now you got it .

  • Amused

    Yup FPM , the best thing to do with this article is to get it off "the Frontpage " …and I really didn't expect any rebuttal , because there is NONE . The TRUTH always has the last word .

  • Maxie

    " Ms. Wasserman Schultz assured Americans that 'we’re going to focus on what we know is the number one priority on Americans’ minds right now, that is, creating jobs and continuing to get this economy turned around.' ”

    This pronouncement was followed later by Jay Carney's revelatory announcement that 'the government doesn't/can't create jobs'.

    It's all so reassuring. The only question is whether the Obamatrons are destroying America by design or stupidity. Maybe some of both?

  • Amused

    Yea , and the latest debt ceiling "debate " PROVES that "the design and the stupidity " goes both ways .I hope all of these so called "patriots " are satisfied with the result .As for credit ratings the US is now ranked behind 18 other nations , many of which are smaller than the state of Texas . It took alot more than "obamtarons " to get us here .

  • 4Liberty

    "Double-Dip Recession???" That's about as ridiculous as "Double-Secret Probation." We're in a depression. Obama has succeeded in bringing the greatest country in world history to her knees. This has been purposeful and orchestrated. I wouldn't be surprised if the Seal team wasn't set-up to die for their "sin" of killing the god of the muslims. We are at war with an enemy that we follow, only we're not fighting, we're just dying..

    • scum

      Uh, idiot, you seem to forget the basics of a little thing called CHRONOLOGY. The crash happened under BUSH, and largely because of the idiocy of GREENSPAN and others. Note how the media gave nothing but accolades when Greenspan retired. I said, 'Let the door hit you on the way out.'

    • Jim_C

      Congrats–dumbest post today.

  • Amused

    4Liberty ……..you're an imbecile .

  • tagalog

    The double-dip recession isn't coming; it's here. What do we call a drop of over 1100 points in the Dow-Jones in the past week if it's not a bloody recession?

    Is it a depression yet? No, I don't think so, but when I saw the lines they showed on 60 Minutes for the mortgage holders waiting to try to refi their mortgages, it convinced me that a depression isn't far away if we're not careful.