05-20-2017, 07:18 PM
(05-20-2017, 03:35 PM)Warren Dew Wrote:(05-20-2017, 09:02 AM)pbrower2a Wrote: Recovery. Things start to go right. There are fewer bankruptcies. Jobs open, and people laid off go back to work. Personal debt starts getting cut into, and loans in default are lesser in number and severity.
One does not go from the delusional prosperity of a bubble through the recognition of its failure to an achievement of prosperity that fits the delusion of the late bubble overnight. But frauds must be liquidated. Delusions of paper profits must become recognition of their falsity. It's like saying that the first step to sobriety after a drunken bunge is the hangover.
The fact that there were frauds and a delusional bubble prove that the regulation was not performing its intended job. Why keep it around when it doesn't work?
In fact, many of the frauds survived by the Fed and TARP. AIG and the too big to fail banks are prime examples of this. It seems far more likely that the liquidation would have been much faster and the one percent almost certainly would have lost much in this process.
Seems like an appropriate outcome to me.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises