"We’ve known for literally thousands of years that debts need to be periodically written down, or the entire economy will collapse."

"We’ve known for 1,900 years
that that rampant inequality destroys societies.

We’ve known for thousands of years
that debasing currencies leads to economic collapse.

We’ve known for hundreds of years
that the failure to punish financial fraud destroys economies.

We’ve known for hundreds of years
that monopolies and the political influence
which accompanies too much power in too few hands
is dangerous for free markets.

We’ve known for hundreds of years
that trust is vital for a healthy economy.

...We’ve known since 1988
that quantitative easing doesn’t work to rescue an ailing economy.

We’ve known since 1993
that derivatives such as credit default swaps
– if not reined in – could take down the economy.

We’ve known since 1998
that crony capitalism destroys even the strongest economies,
and that economies that are capitalist in name only
need major reforms to create accountability
and competitive markets.

...And we knew before the 2008 financial crash
and subsequent bailouts that:

The easy credit policy of the Fed and other central banks,
the failure to regulate the shadow banking system,
and “the use of gimmicks and palliatives” by central banks
hurt the economy

Anything other than (1) letting asset prices fall to their true market value,
(2) increasing savings rates,
and (3) forcing companies to write off bad debts
“will only make things worse”

Bailouts ...harm the economy

The Fed and other central banks were simply transferring risk
...to governments, which could lead to a sovereign debt crisis

Given the insane levels of debt, rampant inequality,
currency debasement, failure to punish financial fraud,
growth of the too big to fails, repeal of Glass-Steagall,
refusal to rein in derivatives, crony capitalism
and other shenanigans
… the financial crisis was entirely foreseeable."

Barry via Washingtons blog