scotty1560

What Shape Will Recession Take?

good analysis: I like a "W" or an "L". New Prez and lots of stimulous,
so I'm hoping for a "W" to buy some time!

Anyone that quotes Andrew Mellon rates high with me. Mellon was the
old school, kill the cancer, keep it simple, start over. Today's technical
guys just complicate everything to death, while not having the "resolve" to
do the necessary dirty work in re-setting an economy. Between the FED,
the treasury, de-regulation, tax codes, etc- I think we have distorted reality
about as far as possible. The old school guys payed cash for most items, had strong equity in a fixed rate mortgage, did not use credit cards. Today we are "encouraged" to do the exact opposite.


Worth repeating:
"That’s how it worked in pre-Keynesian gold standard days, when governments and business followed the downturn advice of onetime U.S. Treasury Secretary Andrew Mellon, who said it was wise to "liquidate everything." The economy might descend to an unpleasant depth, but once it turned, the forces that would fuel the recovery were very strong. Thus, the recoveries after the recessions of 1893-96 and 1920-21 were both exceptionally vigorous by modern standards. "