Writes Richard Salsman on The Financial Crisis: Lessons Not Learned | AIER:
“The financial crisis of 2008-9 — accompanied by the Great Recession, a doubling of the U.S. jobless rate (to 10 percent), and a plunge in major stock-price indexes (−53 percent, peak to trough) — was caused by government intervention, mainly in mortgage finance and the housing sector. Unfortunately, that’s not the conventional interpretation, so no subsequent policy change has been adopted to correct the problem; in fact, still more intervention has occurred, via the Dodd-Frank Act (2010) and Federal Reserve capital policies and controls on bank dividends. Since the lesson of 2008-9 has not been learned, further crises are likely, but with still more severe consequences, given the accumulation of still more powers of state intervention.”
To learn the lessons that American politicians and the intellectuals they follow have failed to grasp, read the rest of The Financial Crisis: Lessons Not Learned.