What Happened to the Recovery? - WSJ.com

HOW OBAMA'S ECONOMIC SPENDING BUBBLE IS LIKE THE HOUSING BUBBLE: What Happened to the Recovery? - WSJ.com


It's hard to believe we can still be seeing growth projections like 3% for the 3rd and 4th quarters.

If there was any more proof needed, its the current debt limit negotiations.

Anyone not tied to big government and entitlements has to see that we can't afford what Obama has put in place and defending tooth and nail.

A perfect parallel was the housing crisis. Then people thought houses could keep going up in price without any substantive changes to incomes (and no real limit to new houses being built).

Right now, we have economic leadership believing that borrowing and printing money never needs to stop and that high taxes won't impact the economy. (Wessel's discussion of 1937 omits a reference Art Laffer makes to higher taxes and support for unions. Both of which should be put into current econometric models.)

Now we have a spending bubble that is like the housing bubble.

If the housing bubble had stopped growing sooner, we'd all have been better off. Obama clearly has no interest in stopping the government spending bubble.