How Government Failure Caused the Great Recession

The American ^ | December 22, 2010 | Mark J. Perry and Robert Dell

[neverdem]

The interaction of six government policies explains the timing, severity, and global impact of the financial crisis.

Today we see how utterly mistaken was the Milton Friedman notion that a market system can regulate itself. We see how silly the Ronald Reagan slogan was that government is the problem, not the solution . . . I wish Friedman were still alive so he could witness how his extremism led to the defeat of his own ideas. 

— Economist Paul Samuelson (January 2009)

The people on Wall Street still don't get it. They're still puzzled—why is it that people are mad at the banks? Well, let's see. You know, you guys are drawing down 10, 20 million dollar bonuses after America went through the worst economic year that it's gone through in decades, and you guys caused the problem. 

— President Barack Obama (December 2009)

The banking crisis that began in August 2007 shocked markets and precipitated the Great Recession. To fully explain the banking crisis, one must account for its timing, severity, and global impact. One must also confront a startling historical contrast. If we define “banking crisis” to mean bank failures and system losses exceeding 1 percent of a country’s gross domestic product (GDP), we find that in the period 1875-1913, a period of marked expansion in international trade and capital flows comparable to the last three decades, there were only four banking crises worldwide.¹ By contrast, in the period 1978-2009, a period of much more extensive bank regulation, central bank intervention, government protection of depositors and other bank creditors, and government control of mortgage markets, about 140 banking crises occurred worldwide. Of these, 20 were more severe than any crisis from the earlier period of 1875-1913, in terms of total bank losses as...

[thethirddegree]

A free people operating a free-market economy will self-correct. All government ever does is screw it up.

[Tennessean4Bush]

Ping mice elf

[hosepipe]

When the central bank(fed.res.) can produce fiat currency/money the whole banking scene is a Ponzi scheme..

Even when it seems healthly, its NOT healthly..
Its a shell game.. a Chinese Fire drill.. a house of mirrors..

The only real money are commodities.. and some stocks but not all..

[Flavious_Maximus]

The title should be:

How DEMOCRAT Government Failure Caused the Great Recession.

[jazzlite]

...”A free people operating a free-market economy will self-correct. All government ever does is screw it up”...

That is correct. It is like nature correcting itself. Human beings only meddle in monetary matters in order to break in and steal. Corrupt politics always takes down nations..I hope 2011 will be the year that THE PEOPLE call a halt to all the regulatory schemes, specifically designed to impoverish us and make our form of government obsolete.

[No!]

It all started with raising the deposit insurance amout, then Fanny and Freddie, REITS, et al, then destroying the special Savings and Loan system for housing, and on and on to today.

Very good article

[No!]

It all started with raising the deposit insurance amounts, then Fanny and Freddie, REITS, et al, then destroying the special Savings and Loan system for housing, and on and on to today.

Very good article

[Conservative Tsunami]

These aren't honest crises of wrong policies for the U.S.; we've clearly been sabotaged by the government, for the government at every turn.

Now what are we going to do about it?

[dools0007world]

This story line is old news and a waste of print, air and bandwidth time.

What we should be talking about is fixing it. Tea Party movement is a great beginning but the battle is far from over. Conservatives must produce a coherent strategy to defeat American Marxists. For example, we need a plan to deal with the likes of Brown, Snowe and the others on a daily basis. Their lives must be made as close to a living hell as is legally possible every day.

My hat is off to those of you who’re taking the time to take the fight to them on an individual basis. But to make a really meaningful impact on our RINO scum we must coordinate our efforts.

I would love to have a dialog with like minded people. Perhaps we can organize a chat room dedicated to organizing legal attacks on the traitors.

[wintertime]

Conservatives must produce a coherent strategy to defeat American Marxists.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Part of the long term strategy MUST MUST MUST include shutting down our collectivist government K-12 schools and getting our nation's children into **private** and educational settings.

If children attend godless, collectivist, government schools run by collectivist people committees ( misnamed school boards) they **will** learn to be comfortable with godlessness, collectivism, socialism, government compulsion, and government ownership of goods and services.

If government can take money from a neighbor ( using the threat of armed police action) for tuition-free schooling, why not a thousand other socialist wants and needs?

The IRS, unions, feminism, the federal reserve, Woodrow Wilson, FDR, Johnson, the alphabet agencies, and now death panels were NOT an accident. They were INEVITABLE! They are result of three to five generations of American children attending compulsory, collectivist, government owned and run indoctrination centers ( oops! “schools”).

Private conservative reform could include:

**one room schools run by teachers in their homes or small rented spaces
** one room schools in existing day care centers.
** tutoring centers
** homeschool co-ops
** brick and mortar schools run by churches and other private organizations.

The long term strategy MUST MUST MUST also include complete reform and shut down of many our colleges and universities. Charles Murray is right. We need privately administered proficiency exams. All state universities should be privatized and most should be shuttered.

[thirst4truth]

My hat is off to those of you who’re taking the time to take the fight to them on an individual basis. But to make a really meaningful impact on our RINO scum we must coordinate our efforts.

My children are young adults in their early twenties. All have moved out and are doing well, but totally ignorant of politics, the constitution and government.

Over this weekend we have watched some programs all found on Foxnews. One is the special Glenn Beck had on the Constitution, really good one hour that taught us all things we did not know about the founders and their intentions in writing the Declaration of Independence and the Constitution.

Plus John Stossel had a wonderful special about governments laws and their unintended consequenses.

It has to take us each individually to educate ourselves and then stand for our liberty and the Constitution. Each one of us has to be moral and ethical in our personal and business lives and mentor that to our family, friends and children.

I told my children that they need to know our country's roots so that when some men want to take it away they will be able to fight. They have to rise up and be patriots now, as the boom generation is mostly bust in morals, ethics and the position of government in our lives.

WE THE PEOPLE at the beginning of the Constitution is not a font error.

[jnsun]

I think the only real money is production. ("commodities" as a poster above says).

Out and out production of something that others want, thus, one, a family, a business, a nation, can get something in return.

"Money," whatever that misused concept means, may be used as a facilitator if held accountable, but trading, bartering, works also. Zimbabwe, or the ex-Soviet Union, or the United Staes, can print unaccountably all the money it cares to, but what good is that "facilitator" then? Rubles anyone?

It is all phony economics. Harvard, Samuelson, Krugman, Maddoff, Schumer, Boxer, Clinton, Rockefeller, Obama, Oprah.

All phony, and those who listen to them, invariably the parasites. The meaning of inflation.

Johnny Suntrade

[jnsun]

I think the only real money is production. ("commodities" as a poster above says).

Out and out production of something that others want, thus, one, a family, a business, a nation, can get something in return.

"Money," whatever that misused concept means, may be used as a facilitator if held accountable, but trading, bartering, works also. Zimbabwe, or the ex-Soviet Union, or the United States, can print unaccountably all the money it cares to, but what good is that "facilitator" then? Rubles anyone?

It is all phony economics. Harvard, Samuelson, Krugman, Maddoff, Schumer, Boxer, Clinton, Rockefeller, Obama, Oprah.

All phony, and those who listen to them, invariably the parasites. The meaning of inflation.

Johnny Suntrade

[Para-Ord.45]

BM