Deep Recessions Can Be Easily Corrected

             

America has always had self-corrective economic cycles, but now we have more regulators than ever before; they

are doing their man-made damage, as never before. Corrections are available:

                 

By avoiding the massive bailout with regulators offering the illusion of doing something. Probably, all that was needed was a federal agency guarantee of all bank assets, with a fee charged to the banks.

                 

By avoiding “mark-to-market” accounting of mortgage assets, which had no market appraisal, which wiped out assets of major banks almost overnight, aided by short selling this enticed.

                 

By having a government agency buying up, at bankruptcy, and destroying, empty tract homes in over- speculative states such as Nevada, Florida and California.

                 

The government repeated the same errors made by Franklin Roosevelt during the Great Depression. We thus accomplished little for the economy but have revamped the form of government with state capitalism, a nasty type of socialism.

                 

The Dodd-Frank Act, in a further attempt to get us out of this mess, is a disaster beyond anything America has had. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)