defibrillate the patient with massive Keynesian spending. Why can't the Fed and Washington heed the lessons learned from The Forgotten Depression of 1920? That depression was every bit as bad as the Great Depression, but the economy recovered without protracted malaise. The difference? The Fed and the federal government allowed the economy to deleverage and clear itself of malinvestment. In other words, they allowed the patient to heal.
One more thought before the headlines: By preventing the economy from naturally deleveraging and clearing itself of malinvestment, the Fed and Washington have prolonged the suffering of the unemployed. What should make every unemployed, underemployed, and marginally attached worker angry--as it has made me angry-- is that the Fed propped up the stock market and Uncle Sam rewarded his cronies in exchange for the protracted economic malaise we've been experiencing, and its accompanying chronic unemployment.
Unemployment Running Out: More Americans Joining Disability Than Finding Jobs
Bernanke Predicts Slow Progress On Unemployment
Businesses Pessimistic About Economy, Hiring
Bernanke Gloomy On Economic Outlook
Sen. Schumer Tells Bernanke To Print Dollars Before November
CNBC: How Close Are We To New Great Depression?
ECOMINOES FLASHBACK: More On The Ongoing Depression And The Coming Austerity
In other news:
Do Obama's Executive Orders Reveal A Pattern?
ECOMINOES FLASHBACK: Obama's Communication Takeover Order Created To Protect Government?
Under Present Conditions, The Post-World War II American Economic Renaissance Cannot Be Repeated
Chevy Volt Makes NO Money, Costs Taxpayers Hundreds of Thousands of Dollars Per Car
One Problem With Low Interest Rates: Pension Under-Funding For S&P 500 Companies Hits Record