There were some rules that were made after 1929…right? Those rules got ditched and things have been significantly deregulated since.
I don’t know what “rules” you are thinking of, but it is generally accepted fact that the failure of the Fed to loosen monetary policy was one of the major factors in turning the events of 1929 into a full-blown Depression. This is why, when 2008 came around, Dr. Bernanke, who is a student of the Great Depression and the causes of it, did precisely the opposite.
In 2008, a case can be made that Obama’s push for an infrastructure bill was what really saved the economy back in 2008.
Yes, but it’s a damn weak case. By Paul Krugman’s own calculations, the $$$ needed to reliquify the economy in 2008 was 3.8T over and above the Bush-era TARP program. Obama provided less than a T of that; the rest came from various Fed programs enacted unilaterally by Ben Bernanke.
Deregulating banks to the extent we have then still backstopping them this way is neither wise nor fair.
I don’t think we’ve deregulated them all that much, to be honest. :-) But to your point, if you don’t allow them access to cheap credit when shit like the coronavirus (which is beyond their control) happens, you’re not going to have a banking system which functions very well.
The Fed’s independence is clearly non-existent and it appears has significant input on what happens there.
I don’t know if it is “clearly non-existent”, but I’d agree with you that Fed independence is essential for the modern monetary system to function.