The air seems to be slowly leaking out of Obama’s balloon--or was it another bubble? One obvious dilemma is plain: big expansions of government require a major crisis, hence Obama and Company’s crisis talk of the early weeks. But it became evident that such talk was making the economic situation worse, such that Obama had to turn on a dime and become a cheerleader for the nation’s economy, even as centrist members of his own party begin rebelling against huge spending, card check, cap and trade, etc. Still, we are in a contest to see whether the government can attain even more mastery over the private sector, and the private sector is starting to fight back.
Now, if I was in a conspiratorial frame of mind, and thought Obama was an evil genius, I’d wonder whether the murky TARP II provision that allowed the AIG bonuses was deliberately calculated to provoke outrage in order to justify greater government control over executive salaries across the board, as indeed Barney Frank has intimated is his desire. Nah. Can’t be that clever, can they?