Welcome to Fantasy Island


Listen to the president and one would think that he was in office during the financial crisis that began on September 15, 2008. For the nth time, Obama reminded the nation on 60 Minutes of the financial meltdown he inherited. That is his usual way of suggesting to the American people that they could hardly hope for normal times after six years of his own governance. In truth, Obama entered office on January 20, 2009 -- over four months after the collapse of Fannie Mae and Freddie Mac that precipitated a general financial meltdown.

One would not expect Obama to fault past liberal congressional intervention in the financial sector that in large part forced the issuance of subprime risky mortgages, much less the earlier deregulation of the financial industry under Bill Clinton that helped fueled the rampant speculation. The videos of the sad congressional banter about supposedly insensitive questioning of the duplicitous and corrupt Fannie head Franklin Raines, or the self-important bluster of former Rep. Barney Frank, make a good 10-minute tutorial on the meltdown -- namely how Wall Street sharks, hand-in-glove with liberal congressional operatives and Clinton appointees, offered federally “guaranteed” mortgages to those who had no ability to pay them back, fueling a phony real estate boom and overvalued stock market.

Obama might at least admit that when he entered office the panic had largely passed. The tools needed to deal with it that he embraced had months earlier been implemented by someone else. Indeed, Obama was president for just a few months before the recession that began in December 2007 ended in June 2009 -- well before the effect of any of the policies, good or bad, could have taken effect.

Our current economic mess -- the worst post-recession recovery since World War II, more people out of work than when Obama took office, a steady decline in real family income, massive new debt -- is largely a result of his own policies of five consecutive $1 trillion deficits, the Obamacare catastrophe, new burdensome and capricious regulations, near-zero interest rates, and the anti-business psychological climate brought on by constant hectoring of the “you did not build that” and “at a certain point you’ve made enough money” sort.

Obama has a bad habit of claiming credit for good things that he opposed, and for blaming others for the bad things for which he was responsible. By his appointments (do we remember Steven Chu?), by his rhetoric, and by his policies on new federal energy leases, Obama is on record against horizontal drilling and the fracking of natural gas and oil. Yet now he brags that energy prices are dipping, which is the case precisely because the private sector ignored him and went ahead to take risks to develop more gas and oil on largely private lands.