How To Cause Great Depressions

" A Minneapolis Fed paper summarizes the lessons of recent financial debacles in an attempt to help us avoid another Great Depression. The bottom line? We're not out of the woods. Key points: The government response to financial-system catastrophes is more important that what caused the collapse in the first place. Seizing and breaking up insolvent banks while reprivatizing strong ones is expensive, but it works. See Chile and Finland. Nursing insolvent banks and unproductive firms along leads to a Great Depression. See Mexico and Japan. We need to provide liquidity to our good banks, seize and dismantle our insolvent banks, and let companies like General Motors and Chrysler die."