A Future Financial Crisis

Leave it to left-leaning politicians to make a mess out of an ordinary economic cycle and blame it on others. What was a simple sub-prime mortgage problem, that normally would lead to a minor recession, has become a near Depression, comparable in many ways to that of the 1930’s.

All because of political meddling and bumbling.

Students of the Great Depression now see how Franklin D. Roosevelt overreacted with over-spending. Then he over-taxed and over-regulated business and created a Depression psychology that prevailed until World War II acted as a giant economic stimulus.

The same political meddling and bumbling is occurring today. The extraordinary spending will inevitably produce further crises, in the form of senseless regulation, business-stifling taxes, and eventual inflation.

But inflation is a slow starter. That’s because poor economies hold back prices, At the sign of a full recovery, however, prices will start to jump.

Unfortunately, the politicians responsible for the new, real financial crisis-to-come, may be out of office by then. And the blame will be placed on the shoulders of administrations who will be around to attempt to clean up the impossible mess.