/liberty/ - Liberty

>>94981

>What should governments have done after the subprime mortgage crisis?

The Gov should have done nothing! They created the bubble and bubble pops. Let the market fix itself naturally and stop interfering it with a supply of money or whatever they think that could fix the bursting bubble.

>>94981

>What should governments have done

99% of the time the answer is "nothing," and recessions are no exception. It was state credit expansion and state promises of bailouts, spurred on by state programs to give mortgages to people who couldn't afford them. The only solution is to let the market normalize and allow interest rates to be set by market supply and demand rather than T-bond voodoo.

>>94992

Maybe once upon a time. Not anymore, we're too deep into the hole to dig ourselves out. The faster the federal government defaults on all its debts and declares bankruptcy, the less painful the fall will ultimately be.

>>94985

There's a reason why the bursting of housing bubble is worst than the dot com bubble. It is because the government involvement in the housing market which lead the tax payer losing their money especially when you have 401K as apart of your life saving investment. At least in the dot com bubble, there's were no tax payer money were involved, only private companies. Although, the FED were also at its fault for artificially micro managing the interest rate without applying the fundamental of supply and demand to reflect real value of interest rate. The only rational step the government should have done was to amend the 1913 FED act and replace it with something more fairer legislation. Also, the government shouldn't have involved in the market in the first place.

>>94981

Decriminalize the issue of competing currencies.

Abolish all taxes and tariffs, but failing that, replace them all with a single flat tax on corporate profits (it's effectively like a sales tax that the customers don't have to see). Make this tax at the local level, and allow each higher level of government to tax only the levels of government immediately below them.

Abolish all welfare programs, but failing that, replace them with a single continuous-rate negative income tax. Filing is voluntary, and only citizens qualify.

Abolish the military, decriminalize all weapons, return to issuing letters of marque and reprisal, and auction off all military equipment to the private sector.

Decriminalize all substances.

Prohibit publicly-funded retirement programs, but honor existing obligations. Transition public sector retirement plans to the private market. Going forward, public employees may not receive compensation in the form of promises of future payment.

Government representatives may only be paid the mean average of their constituents' wages, including the unemployed, reduced by a function of the public debt.

Give federal land to the states.

Abolish all agencies not specifically enumerated in the Constitution.

Shy of abolishing the government entirely, that's what the government should always do about everything.

>>95029

enjoy your nuclear wasteland dotted with bunkers and no useable water ya moron

>>94981

Let the market fix itself, no matter how painful it might.