If we want to avoid the next great depression, all such government interventions should cease. [That's all the housing stuff he's talking about. -Al] The Treasury Department should revise their recent action and turn their proposed conservatorship of Fannie and Freddie into a bankruptcy receivership that would ultimately liquidate the corporation and their liabilities. Meanwhile the Fed should announce its intent to stop Term Auction Facilities and close the discount window to all but its traditional customers. To reduce the negative impact of the recession, government should cease foreign hostilities, reduce military spending, balance the budget, and cut taxes and regulations.
How to Avoid Another Depression.
I recommend reading this alongside The Nation's article on the Freddie and Fannie takeover, State Capitalism Comes to America.
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