List as many different ways that this recent financial crisis ...

[ColbertWatcher]

... has proven that the GOP-trickle-down-Freidman-economic ideology simply doesn't work.

I'll start, the GOP love to say that industry can be trusted to "police itself." However, after Glass-Steagle was repealed, the banking industry proved that it cannot be trusted without an oversight agency with the authority to prevent abuse and strict regulations to ensure that industry doesn't laissez faire the entire country into ruin.

What's your idea for how this recent financial crisis is definitive proof that GOP ideas fail?

[ixion]

1. proves that "fuzzy math" and "spooky action at a distance" are not accounting principles

...

[Bobcat]

2. Neo-con Economics

They have consistently "fudged" the numbers.

Case in point #1 - David Stockman himself admitted that they "sold" Reagonomics in the 80's by estimating that GDP would grow by 12%, thus bringing in enough revenue to balance the budget in the face of massive tax cuts (for the wealthy) and the tripling of the defense budget. 12% growth is a ridiculous estimate.

Case in point #2 - these days the chicken little argument that Social Security will be insolvent in 10 years is also based on "cooked" numbers. The models used to illustrate the problem are based on a GDP growth rate of 1.6% over the next 50 years. The average growth of the US economy for the 20th century is nearly twice that - in spite of the Great Depression. Actual income (the tax base) will likely be much greater that 1.6% in the long run. I have yet to see a projection based on 3% growth.
There are also other variables in the social security formula that could be changed to alleviate the "problem".

FUNDAMENTAL MACROECONOMICS LESSON - one can paint a glowing, rosy picture of the future simply by OVER estimating the rate of GDP growth (e.g. 1980's Reganomics con job) OR one can paint a picture of doom and gloom by UNDER estimating the rate of GDP growth (e.g. current dire predictions about social security). Reasonable projections should be based on historical economic performance.
The neocons have been manipulating the numbers for 30 years to foist their agenda on us.

[ColbertWatcher]

3. Not to be obstinate here, but ...

... how can this be applied to the current situation?