Tuesday, August 17, 2010

Our recession, like Japan's, is due to poor monetary policy

"Recessions, in short, are positive, and historically brief occurrences that signal an economy on the mend. Failure to allow recessions to run their course in order to weed out bad investments and poor management merely ensures longer periods of economic strife; thus Japan's lost '90s decade, and ours at present."


Very interesting, and very scary, reading -- it seems we *know* what to do, and what not to do about the recession and recovery -- and our government is earnestly and relentlessly doing exactly the things it should not do, and refusing to do the things it should do. It is repeating the mistakes of Japan in the 1990s, condemning us to a decade of no growth.

It is all too depressing.

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