Avicenna wrote:oPseudonym wrote:From Northern Observer, this is an echo of Herbert Hoover:from the best littlerature I've read this is a balance sheet recession. Debts must be liquidated for growth to start again. That mean letting shareholders fail, letting banks fall, recapitalising under federal trusteeship and starting over again. Faster forclusure, faster bankcruptcy, debt annullment, debt abatement and debt forgiveness.
There is nothing new or clever about any of it. It was all tried and failed many times, until the greatest failure of all in the Great Depression and WWII.
Of course, it was Hoover's Treasury Secretary Andrew Mellon who urged him to "liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate" -- advice which Hoover, by his own account, outright rejected in favor of interventionism.But other members of the Administration, also having economic responsibilities — Under Secretary of the Treasury Mills, Governor Young of the Reserve Board, Secretary of Commerce Lamont and Secretary of Agriculture Hyde — believed with me that we should use the powers of government to cushion the situation.
-- The Memoirs of Herbert Hoover
And Hoover did exactly that - by expanding credit, increasing government spending to an unprecedented degree, running up huge deficits, exacting promises from industrial leaders not to cut wages, bailing out the farmers, and building massive public works projects.
I see how it is -- Hoover was a failure, therefore, he must have disagreed with you politically.
It's a good argument, if your object is to ease cognitive dissonance.