Recession to Depression: how close are we?

[UnderseaLcpl]

Originally Posted by Skybird

Lance,

it is strange that you point out that "Skybird is totally right" - when we totally disagree concerning what you wrote! Judging by what you said, we could not assess the situation and it's causes any more different, it seems.

I know. I just thought it would be fun to hijack your argument and run the other way with it.

I know we have trod this ground before but I wholeheartedly disagree with your assessment that the market does not regulate itself.
The vast majority of the past century has been a period of effective self-regulation of the market. Free trade has generated wealth and prosperity consistently even as the strain of supporting the bloated state increases.
In the instances where the economy enters recession, it is working the way it is supposed to. That's part of the cycle. However, it never really gets a chance to work through recession like it should because the state always steps in and bungles the natural recovery process.

What you blame on the market is in fact the fault of the state. But I'm curious as to how you would prefer to see the problem addressed, and how you would effectively implement such a system.