The administration and Congress have responded to the financial collapses on Wall Street with unprecedented power grabs and staggeringly humungous bailouts. The Fed is taking on a new role in directly propping up businesses. The Treasury now has dictatorial powers over finance. More is promised to come. Both McCain and Obama vow not to continue the supposedly laissez faire approach of the Bush years, which have in reality, even before the "rescue" plan, corresponded to the largest expansion of U.S. government power in two or more generations.
When big government can't solve the problem, the prescription is for more government.
The talking heads are utterly baffled. How can the bailout not have worked? Why is the market continuing to decline? Is another New Deal necessary?
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