That's a great new theory you came up with. Oh wait, it seems a little simialar to someone elses:
http://en.wikipedia.org/wiki/Andrew_Mellon#The_Great_Depression
The Great Depression
Mellon became unpopular with the onset of the
Great Depression when his infamous "liquidationist" thesis. He advised
Herbert Hoover to "liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate ... it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people."[
citation needed] Additionally, he advocated the weeding out "weak" banks as a harsh but necessary prerequisite to the recovery of the banking system. This "weeding out" was accomplished through refusing to lend cash to banks (taking loans and other investments as collateral), and by refusing to put more cash in circulation. He advocated spending cuts to keep the
Federal budget balanced, and opposed fiscal stimulus measures.
