Political actions are solidifying a Great Depression 2

Today, several news items came out that in my opinion, are making matters worse. No one action turns a recession into a depression. A collective of bad decisions to avoid attacking the root problem and attempting to create a patchwork of changes, construct a loooong recession or depression.

News Items today that I find particularly troublesome.
Price controls being considered. - Absolutely insane. Does everyone have a memory that lasts only 5 years? The 70's price controls was a DISASTER. My God. I thought this was suppose to be a free country, where CAPITALISM determines price. Apparently Stalin and Castro where right, the government should set price, not private industry. Start kissing *ss with well connected people, because the concentration of political power will escalate. Lets just hope this is talk and it ends there.

Mexico threatens tariffs in trade dispute - Yet another absolutely insane....but I predicted... Trade barriers start to erect, which if continues, ensure a horrible economic spiral. The last Great Depression was created when countries escalated a protectionism war, crippling international trade. Seems like once again, no one studies history, so we must repeat it. I'm sure Mexico has some very valid issues with the US, but tariff wars will not help anyone. OBAMA BETTER address this ASAP, otherwise other countries will smell blood in the water, and create their own sticks to beat the US and each other up with.

FASB rule changes for companies to value their assets, vote occurring on April 2nd: It would allow banks and other companies that have had a difficult time valuing illiquid mortgage and other securities, the ability to use "significant judgment" when valuing the assets. Once again, instead of restoring faith that companies are properly valued, rules will be changed to allow companies to "decide" what their assets are worth?!?! There is no end to this disaster.

Obama: AIG can't justify 'outrage' of exec bonuses - Great. Obama may interfere with pre-existing contracts by the government intervening and nullifying legal documents? If such action is to be taken, to undermine the rule of law, how about start by ENFORCING laws, before tearing the rule of law apart? AIG would not be paying out these bonuses if the government enforced honest accounting! People don't get bonuses on bankruptcy! This just goes to show political grandstanding to appease the masses takes priority rather than meaningful change. What the politicians don't realize that eventually the masses will still be unhappy.

The Federal Reserve new powers that include authority to monitor and address broad risks across the economy - That is the answer, increase the powers of a financial dictator in the US government to "address" issues as he sees fit. There is no time for debate, or congress to actually vote on spending money. No time for the government to enforce honest accounting. What is needed is more seat-of-the-pants last-second world-will-collapse action. My god. More power without democracy. More quotes "government to have comprehensive authority over all financial products marketed to consumers, including the consistent enforcement of consumer-protection laws related to mortgages and credit cards" This is an all out assault on capitalism.

Wells Fargo calls US Government "Stress test" asinine - One thing he is honest and right about is: "“Is this America -- when you do what your government asks you to do and then retroactively you also have additional conditions?” Kovacevich said. “If we were not forced to take the TARP money, we would have been able to raise private capital at that time” and not needed to cut the dividend to preserve cash, he said. " What this man misses is that the government has a deep need to takeover for capitalism, because capitalism can't be trusted. It needs to be orchestrated with price controls, minor dictators, and government "estimates" on value. The rule of law is about to die. Long live the new kings.

There is a bunch of other bad news out tonight, but the items above, show me that I am correct in doom-gloom for a long, prolonged, deep recession/depression. Unfortunately, it will take economic disaster of high inflation or financial collapse of S&P to 500 to prove me right.

And if there is a terrorist attack, the grab for power may make Bush seem tame. Lets just hope I am wrong, and these actions will make the US capital markets more "Free".....how it can is beyond my comprehension.

A music video on buy & hold of stocks, enjoy (Tnx Swan)