I expect Karl to start blaming Obama for the collapse in the stockmarket soon. That and the GOP talking heads will all start spouting Conventional Wisdom about not raising taxes during a Depression.
Never mind that is what FDR did.

Roosevelt did not raise income taxes before World War II began; however payroll taxes were also introduced to fund the new Social Security program in 1937. He also got Congress to spend more on many various programs and projects never before seen in American history. However, under the revenue pressures brought on by the depression, most states added or increased taxes, including sales as well as income taxes. Roosevelt’s proposal for new taxes on corporate savings were highly controversial in 1936–37, and were rejected by Congress. During the war he pushed for even higher income tax rates for individuals (reaching a marginal tax rate of 91%) and corporations and a cap on high salaries for executives. In order to fund the war, Congress broadened the base so that almost every employee paid federal income taxes, and introduced withholding taxes in 1943.

http://en.wikipedia.org/wiki/Franklin_D._Roosevelt

The GOP will also say that we cannot afford new social programs like universal healthcare never mind that FDR gave us Social Security and the WPA work programs by running up deficits at first. But the GOP will curiously have no problem getting the votes for more money for big business

Deficit spending had been recommended by some economists, most notably by John Maynard Keynes of Britain. Some economists in retrospect have argued that the National Labor Relations Act and Agricultural Adjustment Administration were ineffective policies because they relied on price fixing.[54] The GNP was 34% higher in 1936 than in 1932 and 58% higher in 1940 on the eve of war. That is, the economy grew 58% from 1932 to 1940 in 8 years of peacetime, and then grew 56% from 1940 to 1945 in 5 years of wartime

http://en.wikipedia.org/wiki/Franklin_D._Roosevelt

My bold 58% growth in 8 years 58/8=7.25% growth a year during peacetime after an economic collapse not bad.
We tried things Hoover’s/ Bush’s way for 8 years Obama needs to try the FDR way. He needs to sell his economic policy by saying this is what FDR did after Hoover gave us the Great Depression after another period of Republican Economics.
I also expect the GOP to scream that regulation on business will cost jobs. Our reply should be sure poison cat food makers in China will all be unemployed if Obama gets the FDA working again.
Moving from a regulated economy to a less regulated economy produces cost savings as people cut corners. Looser strings on borrowing provides cash for new ideas and cheap credit means that more people can buy.
The problem is that like any drinking binge you crash sooner or later.
The GOP like an Alky though never remembers the hangover they remember the Buzz.
Early success breeds confidence that you are infallible and that the market will keep going up, every bubble is about ready to burst when the regular players start believing their own sales pitch/scam. Like Greenspan did when he talked about new market efficiencies making the market safe from the old rules about over priced stocks.
When other people not insiders enter a market they don’t understand with big money and start believing a con job based on past success then the bubble might have only a few years left.
A big enough bubble worldwide can leave no safe place for your cash.
An example of the problems of deregulated markets can be found right at my house. I strongly suspect that my Condo’s electrical wiring was not done by Union contractors because the fire alarm has gone off like 12 times this year but no fire.
That is one of the prices you pay buying stuff in a deregulated housing market in a bubble. Time is money and short term expense is disregarded. Junkies always focus on the now and disregard the future.
However if my Condo board has its way the Contractor will pay to fix it and pay for every false fire alarm the Fire Dept has had to respond to. The Fire Dept charges for every call.
So like smoking the costs get passed off to the future but with time the costs grow as the fire Dept bill grows.
Then like an addict the Contractors blame someone else for his mistakes/problems the Lawyers we Consumers have to use to get them to pay for stuff that should have been fixed right in the first place.
I think that it is useful to think of making tons of cash like an addiction the Cash Addicts forget the pain and live for the buzz of making more money but in order to do this their scams must get more complex and end up all being Ponzi schemes.
They are in denial that they have a problem certain society groups seem prone to group addictions like this.
Tulip Mania in Holland is a good example.