Five Lies About The American Economy

by Tim Cavanaugh - March 11th, 2010 (April Publication Date) - Reason.com

The ongoing recession has raised a troubling question for otherwise resurgent Keynesian economists: How can the American economy keep getting worse under the intensive care of an interventionist economic team almost universally praised for its brilliance? The answer may be that the Obama administration is dealing with a fictional economy, one that bears little resemblance to the economy the rest of us inhabit. And when the difference between fact and fiction becomes too apparent, they just make stuff up. Herewith, five big lies the administration loves to tell and the mainstream media (with some notable exceptions) love to repeat:

The details are in the article, but here are the FIVE LIES in summary.
1. Bold government action staved off a Depression
2. “No one wants banks making the kinds of risky loans that got us into this situation..."
3. The economic crisis is a “subprime crisis.”
4. Ben Bernanke is a heroic leader.
5. The worst is behind us.

None of this is true.

What is true?

So-called "bold action" has aggravated the recession just as it did in the depression in the 30s, postponing the recovery and saving failed institutions while taking money of those who did not make mistakes to pay for the errors of the failures. Government continues to foster the stupid loans that generated the real estate bubble that burst once and is building to a second catastrophe. The real causes of the bubble are hidden under cliche excuses that are not true. The person who led the failures is being protected along with all who followed his lead. And finally, the worst is yet to come, as another bubble in real estate failures continues to grow on a daily basis.

Obama is failing economically, failing in diplomacy around the world and failing politically with health care. Just for good measure he is burdening our nation with a level of debt that is unsustainable. Cloward-Piven is a progressive strategy to destroy America with exactly these acts. Yet if you argue that Obama is doing these things intentionally, you get smeared by the American press. How convenient that the people who denounce the idea these actions are intentional come from the political wing of the Democrat Party that proposed the strategy to start with. Does that suggest an ulterior motive that would denigrate their defense?