BUSH IS AQUITTED OF ANY BLAME FOR THE FINANCIAL CRISIS

“I heard somewhere that the great depression brought on a method to keep a run on the banks from causing a worse problem, and that method was to flood them with money.”

Academic study of the Great Depression tought some people, including the otherwise free-market-loving Milton Friedman, the dangers of not using the Fed to prevent deflation. Current Fed chairman Bernanke is a devoted believer in counter-cyclical monetary action. They believe the only reason the depression was Great was because banks failed. I believe they are dead-wrong. Crashes are caused by the preceeding boom period. Depressions are the solution, not the problem. Can’t solve them by treating them to what caused them in the first place.

For instance, how do they explain the “Second Great Depression” of ‘37-’38, which didn’t at all follow from bank collapse? Paul Krugman blames it on spending cuts and budget-balancing, but he’s clearly insane.

Don’t confuse them with the facts.
Actually what Kanjorski said was:

Look, I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th. Here's the facts, and we don't even talk about these things. On Thursday (which would have been September 11th…ahem) at about 11 o’clock in the morning the Federal Reserve noticed a tremendous draw down of money market accounts in the United States to the tune of $550 Billion was being drawn out in in a matter of an hour or two.

The Treasury opened up its window to help and pumped a $105 Billion into the system, and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

Decided to close down the accounts and announce a guarantee of 250k per account so there wouldn’t be further panic out there, and that’s what actually happened.

If they had not done that their estimation was that by 2:00 that afternoon, 5.5 TRILLION would’ve been drawn out of the MM system of the US,
would’ve collapsed the entire economy of the US
and within 24 hours the world economy would have collapsed.

Now we talked at that time about what would happen if that happened.
It would have been the end of our economic system and our political system as we know it.
And that’s why when they made the point, we’ve got to act and do things quickly we did it.

So in a way it is President Bush's fault for not allowing not only our political and economic system, but the world's as well, to fail and put the world in total chaos which is exactly what O-bomb-us and Soros had in mind, IMHO.
Thus the statement about abandoning free-market principles to save the free market. Unfortunately, we were not privy to the above information last September.

This has been posted on FR repeatedly and yet there are people that are ignorant of the facts. I find that surprising.

I debated with myself about posting it again, but with ignorance still running rampant I thought it could not hurt.
Personally, I think most of those that still "don't get it" are the BDS club here on FR and they choose NOT to get it as it ruins their agenda.
You find it surprising...I find it pathetic and sad.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.