Fascinating Comment from Local Bank on Government's Plan

Either that, or the expansionary cycle that preceded this contraction lead to erroneous expectations. The correct answer may turn out to be a little of both.

My observation is that our current contraction is merely correcting the extremes of the expansion that preceded and created it. It follows that the depths of this contraction to-date can be explained by the degree to which we must go to wash out those extraordinarily overly-optimistic expectations. After all, that's the purpose of cycles: to correct extremes.

-HW "Skip" Weldon Columbia, SC

and the gov't and fed's actions to prevent the last couple of corrections allowed the extremes to become even more pronounced, and thus the current correction more severe.

"Gil Faver" > cycles: to correct extremes.

With the benefit of 20/20 hindsight, I also theorize that the cutting of interest rates--so as to respond to what, a stock market due for a correction?-- was a mistake. But how in the future would an elected official convince his/her fellow elected officials that corrections are a good thing and should not be fought? One could argue history, but I think there are too many who get drunk with the promise of wealth that grows fairly quickly over a matter of years.

I am mentally writing off my bank positions as a total loss and moving forward.

Poster "Logic" said it really well. I am apalled at how this bank official spoke, as if his bank was a responsible institution and had nothing to do with this nascent second Great Depression. As if the banking industry had not become one of the biggest welfare clients, hands outstretched just like any homeless person. Bad as it is for my measly bank positions, I can now support socializing them. Screw them.