“All depressions are caused by government interference and the cure is always offered to take more of the poison that caused the disaster. Depressions are not the result of a free economy.”
Ayn Rand
QUOTE OF THE DAY
“All depressions are caused by government interference and the cure is always offered to take more of the poison that caused the disaster. Depressions are not the result of a free economy.”
Ayn Rand
Depressions are also the HEALING part of the process. Unless we let the too-big-to-fail, fail, the malinvestment unwind, etc. we cannot get back to a sound economic condition from which to grow again. Sadly most see the depression (or whatever the PC term of the day is) as the thing to be avoided AT ALL COSTS, regardless of how much worse it makes the inevitable readjustment.
Massive failures to allow nature to take its course (subprime meltdown) are also theft of opportunity and should be treated as serious crimes in my opinion.
All those actors should have been in bankruptcy court and had their assets auctioned off. The players in the business who did it right should have become the new industry leaders. Instead, they got a boot in the face and knocked off the ladder because of some unexplained “need” to keep the Ivy League losers in place opposed to allowing non-pedigreed outperformers take their places.
Banks that were not in trouble were threatened that they had to take money like the blown up institutions “or else.” Hank Paulsen ran around panicking and moaning about the need for “new products” (I thought money was the product) and how they had to keep their Ivy League brethren employed with seeming little regard for the larger picture.
Burn down the Federal Reserve.