America has always had self-corrective economic cycles, but now we have more financial regulators than ever before; they are doing their man-made damage, as never before. By avoiding massive bailouts by regulators offering the illusion of doing something.
All that was needed in the recent past was a federal agency guarantee of all bank assets, with a fee charged to the banks.
And 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.
And by having a government agency in 2008 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 Herbert Hoover and 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 further attempts to get us out of any financial mess: a disaster beyond anything America has had. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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