History has once again decided to repeat itself. In the 1920s money was cheap. People invested and borrowed more to invest. The stock market looked like it could go on forever. Inevitably, it didn't. In 1929 it crashed. As part of the "recovery" plan that Hoover implemented, the Smoot-Hawley Tariff Act was passed. This raised tariffs on thousands of imported items. Not surprisingly, other countries responded by imposing tariffs of their own on American products. The net result was American imports and exports decreased dramatically. This act helped to turn a recession into the Great Depression.
Fast forward to 2000. The real estate boom is in full swing. People were buying and selling like crazy. Banks were lending to everyone who breathed. It looked like home prices would go up forever. Inevitably, they didn't. In 2008 they crashed. Once again the US decided to implement a "recovery" plan. As part of this plan, a "buy American" clause was included which only allowed American products (even when foreign products are cheaper and better quality). Not suprisingly, many countries viewed this as another protectionist stance and prepared to take similar actions against the US. We are in a recession now, is this going to lead us into a Greater Depression.
One common thread I noted between these two is Mormon Senators. Reed Smoot was a Mormon from Utah, who once was offered the Republican nomination for president if he would give up his religion. Mr. Smoot was one of the primary sponsors of the Smoot-Hawley Tariffs (hence the name).
Harry Reid (notice they are not only Mormon, but Reed/Reid's as well) is a Mormon from Nevada. He was instrumental in negotiating with the three Republican Senators that supported the 2009 stimulus package.
Before someone accuses me of trashing a religion, let me state, I am a Mormon too. In spite of this shared faith, I believe Mr. Smoot and Mr. Reid are both wrong. If this is the kind of leadership Mormon Senators are going to have, then we need to stop electing them.
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