Be afraid. Be very afraid!

Bush, advisers look for economic fixes
By DEB RIECHMANN, Associated Press Writer
WASHINGTON - President Bush and his top economic advisers on Friday will work on drafting a possible package to stimulate the U.S. economy as it weathers the housing slump, rising oil prices and an uptick in unemployment.

Aren't these the folks that got us into this mess? Now they want us to believe they can get us out? (see also, "Iraq")

More good economic news today:
Jobless rate hits 5 percent, 2-year high
By JEANNINE AVERSA, AP Economics Writer
WASHINGTON - Hiring practically stalled in December, driving the nation's unemployment rate up to a two-year high of 5 percent and fanning fears of a recession.

... and less than a week ago, everything was so rosy!
Bush tries to assure families on economy
By BEN FELLER, Associated Press Writer
Sat Dec 29
CRAWFORD, Texas - President Bush tried Saturday to assure many families that he knows they are struggling to pay bills, even as he again defended the economy's strength.
[emphasis added]

So, a week ago W was empathetic but insistent that all is well.
Today he's working on an economic stimulus package.
What a difference the New Year makes!

... and I'm not holding my breath waiting for any admission that maybe, just maybe, W's pro-biz, anti-regulation, borrow-and-spend policies might have anything to do with current mess.

What policy options does W have? Cut taxes? - well, the government really does need some income, and taxes are already lower in the U.S. than in any other industrialized country. Get the Fed to lower interest rates? - some hope here, but rates are pretty low already... and inflation just might become an issue if lowered rates don't provide sufficient stimulus. Expanded Government spending? - okay, where's the $ coming from???

An unregulated "free" market will experience bad times - we've known this at least since Keynes.

W's policies may not be entirely to blame for the current mess, but they certainly contributed. Now he thinks he can ride to the rescue? Sigh.