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The recession of 2008 was absolutely fixed, in that bank collapses were prevented, highly leveraged products based on bad loans were drained from the balance sheets, underwriting was tightened up, and economic activity rebounded.

That fix was just never paid for, in terms of shrinking Fed balance sheets and renormalizing rates.




You can't halt a bank collapse, but you can postpone it and attempt to reduce the impact with inflation which is exactly what has happened.

Additionally, if you don't address the lack of regulation that allowed the collapses in 2008, which we absolutely did not, it will keep happening and those future occurrences will grow in severity. Since now, in order to 'make money', the frauds have to be bigger, faster, and more aggressive.


What do you mean you can't halt a bank collapse? That's exactly what we did. There was a solvency issue when panic ensued after MBS's blew up and we were able to limit a domino effect of bank failures after moving fast to inject capital into the system.

Do you mean it in a philosophical sense similar to the idea that every company will eventually go bankrupt given enough time? Any major crisis is capable of bringing down banks, its inherently a feature of fractional reserve banking but the benefits have so far outweighed the risks.


>You can't halt a bank collapse, but you can postpone it and attempt to reduce the impact with inflation which is exactly what has happened.

What does that even mean?


A good part was paid for. The bank bailouts for example made the Fed some not insignificant amount of money.




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