Let us assume, for the sake of argument, that they are aware and concerned. There is only so much that they can do to avoid the same mistakes--given the prevalence of demagogues in Government, who will insist on "doing something," if things continue to deteriorate. It is when the politicians feel the need to "do something," that we get in trouble.
Remember that the natural tendency of the market is to correct itself. If there is a misallocation of resources, causing dislocations in employment, markets, whatever; the normal response--if the politicians just will stay out of it--is for all of the human factors in the economy to put their greatest effort into finding what is most beneficial to them--what they can legally do which will be most valued by others. That is how the rewards in a free economy are determined.
The way out of a depression is the same way we grew strong to begin with: Unleash the creative force of the whole people. No group of central planners on earth can ever be a match for that. Anyone who understands the actual dynamic knows how utterly ridiculous it is to expect planners to ever be a substitute for the power of a free economy. What Washington needs to be doing is to help remove the barriers to that free economy. Make sure the money is stable; that taxes are not burdensome; that red-tape to appease Leftwing bureaucrats does not impede rapid decision making--rapid adjustment to fluid conditions, etc..
As Reagan put it: Government is not the solution to the problem; often Government is the problem.
As for those Corporate Fiduciaries, who have betrayed the sacred Trust they owed the Shareholders they were supposed to be serving: If they deserve it, Prosecute the Hell out of them! That is a different principle, altogether. For a Fiduciary to milk a Trust for personal benefit is a crime. But the violation of a bureaucratically imposed duty, designed to accomplish some politician's social purpose, is something quite different.
William Flax Return Of The Gods Web Site
True, especially at this stage when people are starting to panic. But at the other stages...grossly inflating the money supply as the boom builds, continuing to contract it during the bust. I wonder.
Remember that the natural tendency of the market is to correct itself.
I'm out of my depth here. But Soros, who isn't, doesn't seem to agree with you. While you may not like many of the things he's done or says, he's no idiot.
What Washington needs to be doing is to help remove the barriers to that free economy. Make sure the money is stable; that taxes are not burdensome; that red-tape to appease Leftwing bureaucrats does not impede rapid decision making--rapid adjustment to fluid conditions, etc..
Who can argue with this...or with your complaints about central planners. Whether it will be enough is for better men than I to say.
As for those Corporate Fiduciaries, who have betrayed the sacred Trust they owed the Shareholders they were supposed to be serving: If they deserve it, Prosecute the Hell out of them!
This is what I think must be done as fast as possible. No single step, in my mind, will restore faith and trust more than this...or, if not done, will do more to undermine them. But this is what I fear the Bush administration does not want to do.