Im am not referring to government deficit and stock of debt, but the production possibilities frontier. The Iraq war was not a dire need. Pumping that type of money into our country would have improved our actual security, and saved thousands upon thousands of lives, along with providing a rather nice multiplier effect.
The crisis is not identifiable in one package, it was the result of years of poor policy and government interference.
Recapitalization via private sources was extinguished during 2003, when the Fed, in coordination with that current administration, sent bubble inducing signals to the consumer to purchase real estate and ****ty cars, etc.... Had corporations been allowed to fail during that time, the weakness displayed this past fall would have occurred much more swiftly, and this entire "too big to fail" argument would never have surfaced. Hopefully you will not force me to bring up the "tax rebate" disaster.
I do not support welfare states, but i am even less supportive of policing the world.