It's been a rough few weeks for Wall Street. Aside from bright spots, such as apparently successful IPOs like LinkedIn and Groupon, things have not been going so well. Recent economic data has illustrated a damning indictment of President Obama and Chairman Bernanke's economy. Unemployment has increased, the CPI has increased (one of the indicators of growing inflation), Quantitative Easing is set to wrap up at the end of the month, the eurozone crisis continues to attract attention, the housing bubble can barely stay inflated, and even the Chinese economy is not growing as well as it has been.
Yet, the impression you get from most of the Kool Aid drinking Keynesians whose influence in Washington is notable is that this is a bump in the road to recovery. Jim Cramer is on Mad Money touting Ben Bernanke as our greatest Fed chairman ever. Jared Bernstein, Paul Krugman, and the like are all doing their best to prove to the imbeciles who are bearish that, in the big picture, everything is going swell.
So, the main question for anyone reading this who may not be as well versed in Austrian, or even Chicago, economics and still remains optimistic about the economy in the long run is this: If these same people who were running the show four years ago (Bernanke, Geithner, etc.) could not see the plainly obvious crisis on the horizon (actually discrediting it many times) last time, why should they be given any credence this time around? They haven't learned their mistakes. Their solutions have always been the same. Boost aggregate demand!
Here's a fun video. This is the same guy the mainstream establishment are putting their full faith in: