Wasn’t the great depression caused by the excessive credit creation and liquidity driven mania of the 20’s? I suppose that was govt intervention as well.
The govt cannot create wealth, it can only re-distribute it. The great depression was a massive loss of confidence in the financial system, we are at that precipice once again. All the govt can do in this case is shift the cost from the banks to the taxpayer, it cannot magically make the risk go away. That is the fallacy of govt intervention.
