Great Depression do over!

How different is this depression than all the rest? How different is it than the Great Depression? Different and yet the same! Once again it is caused by government. What causes retraction? Simply lack of trust. Man has a natural inclination to grow.

This recession actually grows because there were policies in place that caused it to go into a downward spiral. With the implementation of Sarbanes Oxley in recent years to deal with corruption like Enron... The congress implemented changes to our accounting systems and thus a change to valuation of our assets. With the constant mark to market rules implemented thru SO we got a constantly devaluing book value of assets. With declining market values the banks books we have to keep recapitalizing to cover the Feds requirements for loan leverage ratios. In effect the same thing that caused the great depression. Instead of calling in loans like we had in the great depression, which effectively forced money out of the economy and causing a downward spiral and loss of wealth. We have the same issue just caused by distrust first and then a revaluing or lowering of asset values on loans. This time it has happened so quickly because of the mark to market which caused the banks have to keep deleveraging to add more money to the bank balances to cover fed ratios. In effect a margin call on the banks. Without a change to the rules that allow banks to stop delevering their book balances we will continue to have a problem. We will continue to have a problem.