"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people", Andrew Mellon to Herbert Hoover.
Obviously, his advice wasn't followed by Hoover, who preferred to intervene massively following Keynesian theories and push the economy into the Great Depression.
80 years later, Bush, Obama, Greenspan, Bernanke, Hank Paulson and Geithner, are now pushing us into the Greater Depression.
You might want to read this previous post as well:
- 2009-03-23 Saving the auto-industry in the US