QOTD: !Unexpected

“While our economy is enormously complicated, it seems reasonably clear that the current slump has turned into the “worst downturn since the Great Depression” precisely because of the ill-advised policies of the Obama administration. Those policies contradict the lessons of history, and there is no reason why their failure should be unexpected.” —John Hinderaker

It’s not like we haven’t been through this before. We know what economic policies work and which ones don’t. The economy is in the state it is because the US government refused to reign in the credit bubble over the last decade. Market distorting actions of Fannie and Freddie along with the push for a higher rate of homeownership drove housing prices higher into a bubble land. Bank deregulation allowed incredibly risky, highly leveraged options and derivatives to be created and sold by parties that KNEW they would decline in value. Because of regulatory capture, federal regulators refused to take any actions to halt the banks’ gravy train.

Obama, Pelosi, Reid and their fellow co-conspirators used the resulting economic crisis to try to remake the US into a European style socialist state. They’re not interested in the state of the economy because like all good socialists they think that they can “scientifically” manage the economy because they’re just that smart.

None of the results were unexpected.

They just thought you were too stupid to blame them for it.