The Big Stuff Up

When commenting about the current economic situation in July, I wrote.

Most depressions are caused when unexpected events are exacerbated by political leaders. The credit crunch is the result of a foolish response to the dotcom crash. The capabilities of our political leaders have not improved with time. They still have the ability to stuff things up. Unexpected events are inevitable. Mistakes by political leaders are even more inevitable.

We are watching this happen now.

The subprime crisis and the credit crunch are the result of the "easy money" policies of governemnt regulators over the last two decades. Now everyone wants more regulation to resolve the problems.

This is like feeding a laxative to boy who has fouled his bed.