Originally Posted by douggmc
OK ... I understand your timeline better now. I did misinterpret it a bit.
I think we are a bit on same page, but not quite. You attribute and draw a parallel between the 20s and early 2000s as loose monetary policy leading to speculation and a bubble. I would see the same parallel, but attribute it to not enough oversight and regulation (are we saying same thing/agreeing?). This let the engine spin out of control so to speak during the 20s/1980-2000s... an engine without a governor if you will. Hence my characterization of the 20s as laissez-faire ... and to a certain degree the late 80s through mid 2000s the same. Not enough APPROPRIATE oversight and regulation in the right areas.
I would agree that WW2 didn't end the depression too. I disagree with your characterization of what did. You say it was in spite of FDRs policies and government intervention ... and that only after they ended we recovered. I say it was because of it. It took awhile .. yes .. but just as the excessive laissez-faire conditions that create busts don't happen overnight, the implementation of corrective policies don't happen overnight either. It was the very policies of the FDR administration that REBUILT the middle class and lit a fire under the heart of what can be the really ONLY true driver of sustained and healthy growith ... A HEALTHY MIDDLE CLASS.
The core difference is we apparently disagree on what oversight and regulation means and how it should be applied. My version of oversight and regulation is that which is inherent to a truly free market where those that make bad decisions are allowed to fail. That unto itself is the regulation since it requires the malinvestment to be shaken out and the system reset. The banks, GM, AIG, etc would not have been "rescued" by papering over the failure with freshly printed money while waiting for the other shoe to drop, as we're doing right now. The gov't and Fed can never truly regulate or provide oversight because they are part of the system that failed. Market forces is the only true regulator and it's a good one. People run amok when they know the Fed will be there to paper over their failures and pass the inflation tax onto the common man.