The only time a country had a "fast recovery" from recession caused through bank crises: 1929-1933

[ShcShc11 0]

Just wanted to shed some light on this.

The 2008 was a recession/depression caused through crises with financial institutions. Lehman Brother's event permitted a complete credit freeze + housing debts lags the economy.

1980s U.S recession was caused by the Fed through slowing down the interest rates.


1980s Banking crisis from Sweden, 1990s Japanese banking crisis look exactly the same we have now.


1929-1933 is the only time where there was a "rapid recovery", but to do that, banks had to implode first. Banks, this time, were saved through TARP.


This isin't really mentioned by neither GOP or Democrats, so just wanted to point it out It probably also sheds some good light to President Bush for savings the banks through the unpopular TARP.


Cheers!
Shc

[airdvr 210]

I don't believe the government ever pumped 700+ Billion into the economy before.

Please don't dent the planet.

Destinations by Roxanne

[ShcShc11 0]

The New Deal could be considered its equivalent.

What we've learned back then is that when you retract too fast the money, the system ends up "lacking" money circulation.

This lack of money circulation brought America back to the recession in 1937-1938ish... up until the war that re-restored America through massive fundings that would probably worth trillions of $ worth of spending.

700B stimulus (also remember there was a major tax-cut component) is honestly nothing compared to GDP gap caused by 2008 (estimated to be around 3 to 3.5 trillion $).

You get the economy you bought by penny-pinching and being cheap.


Cheers!
Shc

[ShcShc11 0]

Quote

I don't believe the government ever pumped 700+ Billion into the economy before.

unless if you are talking about TARP.
...which in that case, its not really pumping money into the economy.

More like giving banks a cushion from bankruptcy. (A bit like how your bank deposits are insured at 100k in the event the bank goes bankrupt).

Eitherway, the TARP was paid back and considered highly successful.

So I do give high notes Pres. Bush and Obama for TARP in spite of it being highly unpopular with the mass at the time (and even today).


Cheers!
Shc