[Toddsterpatriot]

Basically it would have allowed recovery.

Massive bank failures allows recovery? Why didn't that work in the 1930s?

[Renfield]

Massive bank failures allows recovery? Why didn't that work in the 1930s?

It was small banks that failed in the 1930s, not big banks; those very failures were engineered by the same class of big bankers (Banksters!) who are engineering today's massive financial frauds. Make credit easy, and encourage people to take on massive debt; then make credit difficult, driving debtors into failure, and grab collateralized assets at a fraction of their actual value (and along the way, get the taxpayers to pay the bill). This is why fractional reserve banking and the Federal Reserve were forced upon us; they are "legal" mechanisms for allowing the Rockefellers and Rothschilds to confiscate our wealth.

[palmer]

The federal government gave billions to banks in the 30's http://en.wikipedia.org/wiki/Reconstruction_Finance_Corporation which did not help recovery, probably delayed it for much the same reasons as today. The bank failures were from runs which were necessary, the banks themselves, as today, were not worth a dime.

Recovery after that was thwarted at that point by various policies including the Fed (as now) inflating. Quick deflation would have restored confidence in banks and gotten saving and lending working again. Adjustments in prices prior to the Great Depression were usually very quick thus recoveries were quick.