DEPRESSION COMING

Found this through the Dallas Morning News -- Obama Wall Street supporters are becoming disenchanted with his policies.

The Dow closed today at its lowest mark in 12 years, and now it's becoming clear even to Obama supporters on Wall Street that his reckless agenda will make a bad situation worse.

But for all of that they can’t believe what they are witnessing: an economic agenda that is contradictory at best, and possibly reckless in its extreme. Policies that will certainly make a very bad situation even worse, and when things do get better, they will certainly not be better enough to compensate for the pain we are experiencing.

People compare it to FDR’s New Deal, but it’s only fair to point out that Herbert Hoover’s taxes on the rich and restrictive trade policy, which preceded the New Deal, were hardly free-market-oriented. And when Roosevelt tried many of these same measures, coupled with a massive expansion of government that crowded out business investments large and small, the economy got worse, not better. The stock market’s various declines that occurred throughout the 1930s and well into the 1940s reflected the disconnect between Roosevelt’s economic policies and the economy’s health. A quick check of the Dow Jones Industrial Average shows a series of fits and starts and no recovery until well after World War II.

Things must be bad when even the liberal economist, Paul Krugman, is depressed.