by Winks


The financial panic of 2008 and resulting recession was caused by a misallocation of capital by Washington.  Misallocation (this time through massive government expansion) was used again to mitigate the fallout, while simultaneously blaming private sector greed for causing it.  The truth is, the bubble was created by subsidizing credit and failing to adequately regulate financial transactions.  Indeed, not only did Congress and the Executive branch fail in their duties to properly oversee trading of mortgage securities, they actually encouraged dangerous risk taking by the industry.   

The madness continues with Obama's plans to tamper with the market and "partner" with GE to satisfy his lust for control and his obsession with the "green economy".  Don't be fooled.  This is more of the same that will only create further economic distortions.  We can limit the damage by making him a one term president.  

The Great Misallocators
Wall Street Journal  1/27/2011