The Mixed Economy in Crisis

We know that for generations, the federal government has been regulating finance to the hilt, setting interest rates, monopolizing money and claiming it was managing the business cycle so another depression would never come. Most people in charge thought nothing was amiss with the unstable financial bubble over the last several years. The central planners did not foresee this recession, and yet now say had they had more power, they would have steered the economy away from the problems now visible. Geithner, who was intimately involved with the bailouts late last year, even claims that had he and the other finance bureaucrats and regulators had more powers, they could have prevented the high bonuses.

This is quite reminiscent of the Bush administration's assurances that 9/11 could have been more easily averted had the federal surveillance state and intelligence institutions had more power and resources. With the tens of billions at their disposal, with all the spying powers under FISA and other federal law, they had failed to stop the terrorist attack; but this was all because their hands were tied, we were told.

"More power! (insert 3 grunts here)" ~ Tim Allen aka Tim, the Tool Man, Taylor
When Tim decided the dishwasher or the lawn mower needed more power, he would tinker with it for a while, crank it up and disaster would ensue. We are expecting similar results with the economic tinkering of Bernanke and Geithner but without the canned laughter of the TV show.