Over-confidence. Xenakis, who wrote Generational Dynamics, in 2004 wrote this: "Ten years ago, all the major senior business, government and education leaders were risk-averse people from the generation that grew up during the Great Depression and World War II. Today, all the major leaders are from the risk-seeking, arrogant, hubristic, narcissistic, self-assured 'baby boomer generation.'"

His hypothesis applies to the Iraq War instigators. And they are so hubristic they'd start a war with Iran.

It applies to Bush II, born in 1946, who thinks he can remake the world.

It applies to the credit bubble, which is a manifestation in part of lowered risk aversion. Those contracting big debts, both in the business world and out, didn't think about the risks or factor them in to pricing. It applied earlier to the internet bubble.

These are history. My main point is that Bernanke, born in 1953, is in this group. He thinks that he can stem another Great Depression, if not with helicopter money, then with some other gimmick. He thinks he can manipulate the stock market and stem its decline. He cannot do either of these things. He's overconfident.

Obama, born in 1961, is a Generation X-er. He's just as overconfident as the Baby Boomers and will be just as activist, as he is not separated that far in time from them. But his agenda is a different set of "problems", namely, social problems.