[Toddsterpatriot]

The federal government gave billions to banks in the 30's

Gave?

Recovery after that was thwarted at that point by various policies including the Fed (as now) inflating.

When did the Fed inflate?

Quick deflation would have restored confidence in banks and gotten saving and lending working again.

30% deflation wasn't enough? More would have been better?

[palmer]

Gave?
Loaned. But the point is that, like now, the 30's had its TARP.

30% deflation wasn't enough? More would have been better?

The Fed did various things to try to prevent deflation from 1930 to 1932 (as explained by Rlthbard) but that just prolonged the adjustment. The lengthening of the period of adjustment is what ultimately made the GD much worse. An undershoot (50%?) in prices would have quickly recovered in the subsequent recovery. Our large farming population could have weathered one season of low prices but not several in a row.