The Democrats want to return to the days of bad loans and too-easy credit:

Am I missing something here, or have our elites already erased from their consciousness the fact that easy credit and the lack of responsible budgeting by consumers contributed mightily to our current economic mess? In the fourth quarter of 2008, 13.9% of consumers’ disposable income went to servicing credit-card debt, reports the Wall Street Journal. No shortage of credit there.

Apparently the self-righteous glow that comes from forcing capitalists to make bad bets on preferred victim groups is too strong a legislative addiction to be reined in by the prospect of further economic collapse.

The problem was that it was never in their consciousness to begin with. They find it politically convenient to lie to us and themselves (as they did throughout the campaign) that the problem was caused by “deregulation” and “tax cuts.”

…with no shortage of lies:

A truly serious president would not be fiddling around while our future burns. He would be addressing entitlements (mainly, Social Security, Medicare and Medicaid), which have tens of trillions in unfunded liabilities and constitute 60 percent of the budget. The day of reckoning on this government-generated mess is not all that far off, and when it comes, the economic crisis of the moment will seem small potatoes.

It’s a shame that we don’t have a serious president. It’s amazing that people report on this thing with a straight face. It’s like the coverage of Saddam Hussein’s “election” in which he got 99.9% of the vote.

Megan McArdle says that we may already be having a problem with sovereign debt risk:

Obama’s spending plans are extraordinarily ambitious. His projected deficits for the rest of his possibly presidency are higher than the “runaway” deficits that plagued most of the Bush administration–and after the first few years, that’s not stimulus, that’s ordinary spending outstripping revenue. For a while now, I’ve been asking people at conferences, on and off the record, what America’s sovereign debt risk is? That is, how long until people stop treating treasuries as the “risk free” securities, and start demanding a premium for the risk that we might default.

The answer from the right has been a nervous (perhaps hopeful) 2-3 years. The answer from the left, and professional Democratic wonks, is some unspecified time in the future. Probably, there will be a Republican in charge. Markets hate Republicans.

But last Thursday, the Treasury auction was . . . well, descriptions vary from “weak” to “horrible”. This raises the unpleasant possibility that markets are, as my business school professors insisted, “forward looking”. Voters may believe that getting a bunch of special interests to agree in principal that costs should be cut is the same thing as actually cutting costs. Bond markets don’t…

…Obama can assure voters that he inherited these deficits. But bond markets pay closer attention to the fact that Obama has already increased the projected deficit he inherited by 50%.

Let’s hope that the voters figure it out soon, and before Treasury has to start paying high interest on T-bills.

And your doctor:

Doctors will consolidate into larger practices to spread overhead costs, and they’ll cram more patients into tight schedules to make up in volume what’s lost in margin. Visits will be shortened and new appointments harder to secure. It already takes on average 18 days to get an initial appointment with an internist, according to the American Medical Association, and as many as 30 days for specialists like obstetricians and neurologists.

Right or wrong, more doctors will close their practices to new patients, especially patients carrying lower paying insurance such as Medicaid. Some doctors will opt out of the system entirely, going “cash only.” If too many doctors take this route the government could step in — as in Canada, for example — to effectively outlaw private-only medical practice.

These changes are superimposed on a payment system where compensation often bears no connection to clinical outcomes. Medicare provides all the wrong incentives. Its charge-based system pays doctors more for delivering more care, meaning incomes rise as medical problems persist and decline when illness resolves.

So let’s expand Medicare to everybody. Great.

Thoughts on how to pay for Obamacare.

Also, Tigerhawk on taxes:

I’ve clipped some inflammatory excerpts for your morning indigestion, but it is worth scrolling through to get a sense for the breadth and nature of the proposal. The short version is that President Obama is pushing absolutely staggering increases through the corporate and business tax systems. Direct taxes on business are, in general, inefficient and economically disruptive, but they are also peerless in their complexity, which means that few voters and essentially no reporters will make the effort to understand what is being done to them.

Trust me on this: something awful is being done to you.

That rail option’s looking better and better. With tar and feathers, of course.

[Update a few minutes later]

Obama Trek: the search for more money.

Boldly going where no American fascist president has gone before.

[Update]

They just keep on spending:

If not treated promptly, FSD, like alcoholism, leads inevitably to complete physical breakdown, loss of homes, jobs, cars, respect, everything. The breakdown is not limited to the sufferer, however. Like the alcoholic who must drink hard liquor every waking moment, massive budget deficits are the key symptom of late-stage FSD. The alcoholic dies, but with FSD, the nation, not the spenders, goes bankrupt. Even today, with Obama just beginning to manage the government, Geithner’s Treasury department must offer higher interest rates on bonds it sells to finance planned deficits because bondholders worry about Washington’s future repayment ability if taxes are not soon hugely increased. But those increases would kill economic growth, sending government revenues spiraling downward and eventually leaving Washington only one choice – repudiation of debt or bankruptcy. Either way, American prosperity will be a distant memory for generations to come. Intervention cannot come too soon.

But at least we’ll all be equal in our poverty. And that’s what’s important, right?

James Capretta and Yuval Levin say it must be stopped.