Time is nearly up for Ben Bernanke, the chairman of the Federal Reserve who supposedly applied his scholarly knowledge of the Great Depression to steer the U.S. to safety after the financial crisis. In truth, Bernanke navigated a monetarist course that favored intensive intervention, following in the footsteps of many mainstream economists who grossly misunderstood the lessons of the Crash of 1929 and the ensuing malaise. That lesson is that when corrective crashes occur, intervention is far from the cure — it is the cause.
One of the sad narratives of the financial meltdown of 2008 and its aftermath is that it was and remains the result of unbridled capitalism. Too much freedom spoiled the economic broth. We must never tire of explaining the fallacies in the thinking of those who think the Great Recession is a clear case of the failure of capitalism. In fact, it is a quintessential example of the failures of interventionism to bring about anything other than economic destruction and relative impoverishment.
Predictions regarding the election outcome are all over the place. Dennis Gartman for instance thinks that 'Romney will win quite handily'. While this opinion may be largely informed by wishful thinking in this case, there are two interesting points made by Gartman. One concerns poll errors, and the other the Bradley (or Wilder) effect (or 'political correctness effect' - i.e., it is not motivated by racism, but by the fear of people that they might be seen as racist). Jim Cramer is taking the exact opposite view from Gartman's, expecting a 'landslide' victory for Obama. Of course Cramer wouldn't be Cramer if his forecast didn't stand out for being a bit extreme. The Princeton election consortium's latest update of the meta-analysis of the electoral vote count on the eve of the election continues to predict an Obama victory as well, but clearly the race is getting tighter. However, across the pond, it is clear that the Europeans see the election (and indeed any election it seems) very differently, highlighting their ignorance of the difference between 'total capitalism' and 'crony capitalism'.