An article in the New York Times asked that since the Federal Reserve “failed to recognize the last bubble,… why should Congress, or anyone else, have faith that future Fed officials will recognize the next [one]?” 

economy budgetThe evidence is mounting that the American economy is very far from being out of the woods. For one thing, the latest job reports show that 85,000 more jobs were lost during the month of December, leaving the shattered American economy with 7.2 million jobs fewer than in December 2007.

U.S. Treasury Secretary Timothy Geithner has some explaining to do. Both the New York Times and the British Telegraph have reported that e-mails going back to January 2009 show that the troubled insurance firm American International Group (AIG) received instructions from the New York branch of the Federal Reserve not to reveal certain details of bailout payments the company received courtesy of longsuffering American taxpayers.

The 60 percent gain in stocks since March was largely caused by secret government purchases of stock-index futures, the CEO of TrimTabs claims.

Where do the kinds of jobs that will grow the economy come from? Can the federal government simply create them through more spending? We are about to find out — yet again.