Massive bank failures cut the money supply, not the Federal Reserve. The Fed's mistake was not counteracting the massive collapse in money supply.
They're not making the same mistake this time around.
That is a good point. We are walking on a tight rope. Flooding dollars into the system will likely create inflation, but should the economy tank and people start defaulting on loans that will rapidly shrink the money supply, which will send us in the other direction of economic collapse. Not many good choices out there right now.
My money supply is not being helped. Is yours?
No, the cause was not lack of money, the cause was the Fed’s actions in the 20’s which created a ‘boom-bust’ situation.