Merkle was kind not to refer to the Obama crowd as the "fairy tale shall continue" crowd.
It's clear that most in the US would like to believe that the US can enjoy an outsize standard of living (as it has enjoyed). But, the world is changing and the US is of the "live for today" philosophy.
We had the housing and other bubbles because it was easy and no one wanted the public to be denied. What should have been a wake up call with the housing bubble, both Bush and Obama are hoping to continue to obfuscate with massive government spending.
(As an example, an interview on KNYC radio with the chief economist of Moodys (yes, that Moody's) was exculpating the rating agency by saying "well, if the rating agency had only not believed the every rising prices of real estate might end...." Like on what planet can prices rise indefinitely for something which, after all is said and done, is based on incomes? Incomes weren't rising, just housing prices.
And here, Moody's "current" (yes, he said current) economist is letting his company and himself off the hook for being blind and stupid to basic economic principles.
In light of such reasoning, is it any wonder that some people are concerned about the attempt by governments to continue to let their citizens believe their is a consumer nirvana in the type of big government environment that Brown was expanding even today (with added payments to retirees and higher taxes) and well Obama, he's taking this to yet another higher level.
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