“This is about resetting the financial system so we can bottom out and get to a place where we can grow again.”

the reset won’t occur until the govt stops pumping printing press money into the economy and stops trying to hold asset values at inflated levels that don’t jibe with market reality

in the 1990’s we were telling Japan that they had to purge all the bad debt out of their system to recover – instead Japan kept all their zombie banks alive and here it is 18 years later and they have yet to ‘reset’ their economy – it appears that they are headed into another downturn

Keynes’ idea was basically what you are saying: when the economy is soft the govt steps in and spends money to keep things going – then, after the economy returns to health, THE STIMULUS MONEY IS REMOVED FROM THE SYSTEM

one of the problems with this idea is that the second half of it never gets implemented – instead we move from one stimulus to the next piling more debt on top of the existing debt

the economic reset that is trying to occur right now is the free market system attempting to purge 60 years of Keynesian stimulus