The recession didn’t have to happen at all, but the world’s central banks insisted on it, as they always do.
Some differences then and now according to this author:
* After Black Monday, President Ronald Reagan did not get on television and tell the American people not to panic, as George W. Bush foolishly did in September 2008
* We were led by better people, many of them children of the Depression or veterans of World War II or people who had exhibited steady hands in the Cold War. There was no advisor to a U.S. president with giant nanny state ambitions.
* U.S. government did not add to the uncertainties that paralyze investment and consumption during past recessions. The waning days of George W. Bush and the first 14 months of Barack Obama, on the other hand, have done little else but pile on the uncertainties.
Some differences then and now according to this author:
* After Black Monday, President Ronald Reagan did not get on television and tell the American people not to panic, as George W. Bush foolishly did in September 2008
* We were led by better people, many of them children of the Depression or veterans of World War II or people who had exhibited steady hands in the Cold War. There was no advisor to a U.S. president with giant nanny state ambitions.
* U.S. government did not add to the uncertainties that paralyze investment and consumption during past recessions. The waning days of George W. Bush and the first 14 months of Barack Obama, on the other hand, have done little else but pile on the uncertainties.
The causes of all modern recessions have been central banks inverting their yield curves. Or to put it another way, the cycle of tight money following loose money.
Why is it that the Recession in 1920 is never mentioned?
Well, golly, because Government slashed taxes from 77% to 25% and cut Spending 50%. Golly, that recession ended so fast no one remembers it.
If OholyO had done that instead of ramping up spending to hand out billions to his friends and their friends, this recession would already be over.
But then Obama’s friends would not be so much richer.
All these guys talk as if the “recession” is over. The Recession of 2007-09. Must have been Bush’s fault.
Oh, sure, and businesses are thriving and hiring all over the place. Unemployment numbers are plummeting—or would be if it weren’t for all this darned snow.