An Interesting Link

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Excerpts below (emphasis mine):

"In the fall of 2008, the government treated the stock markets like a hysterical child that needed to be calmed, no matter what. Several bailouts were hastily orchestrated over the weekend, to minimize the dreaded uncertainty by the time the Asian markets opened on Monday morning. It didn't work. The markets plunged anyway, leading to the dubious bank-bailout program and many other desperate moves meant to reassure investors and stop the panic.

"Obama came into office as stocks were sinking toward a 13-year low--and a depression still seemed possible.

"The markets finally bottomed out last March, and government measures finally helped. The Federal Reserve's "stress tests" on big banks provided some transparency about their condition, improving confidence. The government's capital injections into banks helped stabilize them. A smorgasbord of behind-the-scenes guarantee programs, asset purchases and other maneuvers may have been the most effective stabilizers. But all that government aid has also created an economy that's addicted to federal subsidies and terrified of failure, one reason that voters are more skeptical than ever.

"If the economy is really recovering, then the banks and other pillars of free enterprise need to prove they can walk without government crutches. Obama apparently believes they can. His bank bashing obviously has a populist tint, aimed at enraged voters, but it also signals an important shift: The government is no longer coddling Wall Street. That's good news, and the more tension there is between regulator and regulated, the stronger the signs that things are getting back to normal.

"If all goes well, this will be the year when the government retreats from its forays into capitalism. The Federal Reserve will reduce its support of the credit markets. The home-buyer tax credit will expire. Stimulus spending, enacted last year, will start to peter out. The government will reduce its guarantees of bank assets and maybe even get paid back by AIG, Citigroup, General Motors and Chrysler. And the government will start acting like the government again, not like a conflicted Sugar Daddy."--Why It's Good News When Obama Sinks the Market by Rick Newman – Fri Jan 22--U.S. News