C.J. Maloney writes here about history repeating itself in two fascinating yet disturbing ways. First, the banking system caused a housing bubble in 1819 based on bogus, credit-financed money. Second, with BHO's policies already underway (really just a continuation and expansion of Bush's policies), we are repeating the mistaken response to the Great Depression provided by FDR and the politicians of that era.
Maloney explains how the panic of 1819 quickly righted itself because the people of that era understood that government had caused the problem, and that yet more government intervention into voluntary exchange was definitely not the solution.
Today, we've lost sight of the abundant lessons history provides, and lots of folks are clamoring to be saved by government from the problems that government caused in the first place.
More credit is not the answer. More federal spending financed by the Fed buying up non-performing assets with newly created money, while other investors buy Treasury bonds instead, is not the answer. Insisting that investors and banks who made bad loans lose their wealth is the answer.
The economy, left to voluntary exchange, is amazingly robust. Individuals know what to do and how to do it when they are left to pursue their own best interests. Expecting politicians and financial market regulators---who together caused the problem---to solve the problem is simply a stupefying idea.