They blow bubbles, don't they.

Here is Spengler's take on President Elect Obama's financial wizards, from an article with some good background:

For a quarter of a century, the inbred products of the Ivy League puppy mills have known nothing but a rising trend in asset prices. About the origin of this trend, they were incurious. The Reagan administration had encountered a stock market in 1981 trading 50% below its the long-term trend. Reagan restored the equity market to trend by cutting taxes, suppressing inflation and easing some regulations. The private equity sharps were fleas traveling on Reagan's dog. They simply rode the trend with the maximum of leverage...

Without leverage, the clever folk around Barack Obama are fleas without a dog. None of them invented anything, introduced an important new product, opened a new market, or did anything that reached into the lives of ordinary people. They wore expensive cufflinks, read balance sheets, exercised regularly, sat on philanthropic boards, and assumed that their flea's ride on the Reagan dog would last forever.

Apparently their new idea is "shock and awe" stimulation for the economy.  Like the old joke says, when you have a hammer all your problems look like nails. The Real Estate bubble worked out well for Rahm  Emanuel, Barney Frank and the Congressional Democrats. Their Wall Street Pals will "bail out" alright, too.  Obviously, if you know how to create bubbles then when you see a problem break out the bubbly.  So soon we'll have a bubbly auto industry, a bubbly "alternative fuel"  sector and a bubbly bath for the taxpayer. I hope it is "for the children" since they are the ones who will pay for it.

Will his sensible appointees come up with sensible policies?  Or will they break out the bubbly?