John Taylor of Stanford points out that we recently passed the 10 year anniversary of the recession that accompanied the financial crisis. He argues that the policy actions taken after the crisis prolonged the recession and made the recovery weak.
I still think the explanation in my 2009 and 2012 books Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis and First Principles: Five Keys to Restoring Americas Prosperity are basically correct, and I am encouraged that there has been a turnaround recently in regulatory policy and tax policy.
But more investigative research into real-time records of policy actions is essential to determine what went wrong during the past decade. A good example is the new book, forthcoming in 2018, The Fed and Lehman Brothers: Setting the Record Straight on a Financial Disaster, by Larry Ball which investigates the records and uncovers inconsistencies in the government’s story of its role in the panic of 2008. He shows that the Fed could have legally prevented the chaos surrounding the Lehman bankruptcy, but didn’t do so either because of political concerns or a botched implementation of its game plan.