[nie100sowny]

I think you refer to the long unemployment.

Crisis time needs to be shortened then. Banks should raise rates firmly, reaching levels higher than inflation. Big companies should not be artificially saved from collapsing, and regulations simplified. The unemployment period will be then short.

[FormerBandmate]

When big companies collapse people take huge losses, lose the trust in the economy necessary for things to grow, and the economy is hurt for a long time. The bankruptcy of Lehman Brothers almost destroyed the entire financial system, slow-motion collapses like GE and Sears that take decades are vastly preferable

[landemva]

I agree with much of this. If we got the Fed out of the business of propping things up, the downturn would be quick and underperforming assets would change hands and quickly be productively redeployed. Instead, Fed in partnership with government will prop this up and protect the incumbents/existing winners.

[dragonwriter]

> If we got the Fed out of the business of propping things up, the downturn would be quick and underperforming assets would change hands and quickly be productively redeployed

Interesting belief. Things like the Long Depression challenge it, though.

[reasonabl_human]

Where do you folks go to learn on these macroeconomic topics?