The feds continue to follow the economic path that turned the 1929 bust into the sixteen-year Great Depression: artificially keeping prices high, and bailing out failing businesses, when the excesses of the boom must be cleaned out before we can have prosperity. That is, prices must be free to fall to reflect reality, and there must be no more wealth destruction through subsidizing the losers. Yet it’s hardly news, as they debate welfare for Goldman Sachs, that congressmen have voted to bailout the losers called GM, Ford, and Chrysler. It’s just more confirmation, as if we needed it, and officials … Continue reading The Herbert Hoover Playbook