In early ’09, the recession spiraled out of control. The response by the new administration and Congress was ineffective action on housing, and multitrillion-dollar proposals of borrowing and spending.
It was appropriate to extend unemployment benefits. As for bankruptcies and foreclosures, we should let the existing systems work. The root problem of "toxic assets" in the financial system could be minimized by writing down the value of all bad mortgage paper by a standard 20 percent, then let the market work.
The solution is not in more trillion-dollar debt on future social health care, education and energy ideas, nor any increase in taxes. What is needed now is focused, clear direction.