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Larry Lindsey, Bush's former chief economist, points out in his latest client advisory that "The projected 2006 budget deficit of 3.0 percent of GDP is reasonable if the economy continues to grow."

The economy grew and it continued to grow. At one point Steve Forbes said the US economy had grown by as much as the size of the entire Chinese economy. It’s like we put a China in our pocket.

To the extent that this growth was due to tax cuts (increased economic freedom and opportunity), the economic growth was good and provided a foundation for the future.

To the extent that this growth came from juicing up the housing market with subprime loans, it was like dancing on a keg of dynamite. When government pushes one sector like that, it produces a misallocation of resources. Too much housing, education, or anything else, means too little of something else. It also leads to a glut in the favored sector - that will have to be worked off at a later date.

Socialism results in a misallocation of resources (That’s bad). FDR may have started Federal intrusion into housing in 1938 when he created Fannie Mae. Bush couldn’t have stopped Federal meddling, but perhaps he could have done more to reduce it. Of course with Obama, Reid, and Pelosi, we can expect much more government meddling (control).

The last I heard about the Obama deficits were that they were huge, given a growth projection of 4%. I don’t see economic growth of 4% with our Democrat (socialist) party in charge.

I can’t recommend investing in the stock market (investing in America) at this time. The stock market and free market are not in charge. Pelosi, Reid and Obama are in charge. Obama has encouraged that people invest in the stock market. (Rich people, give me your money.). When he announces that investing in the stock market is good - morally good, good for the economy, good for America and the world - then I may listen. When he admits that there is no way that government decision making can be as good as the decision making of millions of people, spending their own money - not someone else's, then he may get my vote.

RE :”To the extent that this growth was due to tax cuts (increased economic freedom and opportunity), the economic growth was good and provided a foundation for the future. To the extent that this growth came from juicing up the housing market with subprime loans, it was like dancing on a keg of dynamite”

Don't forget the gasoline, low interest rates and created money. That is the gasoline poured on the house and lit so we don't freeze, it's always fun for a while, they the house gets too hot, then it burns to the ground, then we borrow more wood to start over again.