What the government has kept trying to do since the 30s is short-circuit the natural economic processes, and each time it does that, the cycles get wilder. Stupid business practices are rewarded by penalizing those who didn't go broke. Wealth is handed out from those who earned or preserved it to those who lost it.

The more people and companies screw up, the more money they get. Now the Democrats want people to be saved from foreclosures. People who made bad decisions will get money. People who were frugal and didn't borrow to the limit on their houses will get squat, and they'll be lucky if their taxes don't go up to pay the others.

Right now we have every incompetent state, county and city standing in line to get Federal money to keep them from having to make hard decisions of their own. My own chief among them. If I get a tax refund from California this year, it might be an IOU. And I suspect it'll be a cold day in hell when they pay me the interest they would demand if I was late with a payment.

Bankruptcies, business closures, buyouts, mergers, foreclosures, job movements. All ways an economy rebalances itself, and redirects wealth from bad places to better ones. A true economic correction would be long and painful, but each time we suppress it artificially, the pressure builds up, and the printed money increases. The crash will be even worse next time.

This has never been about regulations. It's about a worldview that thinks market forces are imaginary. This bailout/stimulus crap is nuts. I said it was nuts when Bush was doing it, and it's just as nuts when Obama is doing it.

State tax revenue will increase and replace the federal funds.

Where will this revenue COME from? Look who pays most of the taxes now. It ain't construction workers, particularly workers who are getting paid from tax money.