Yes that’s how it seems to be in
It is not surprise when Mr Bery write “the developed countries (some of whom then were not much richer in the 1930s than the middle-income countries of Asia today), interest in saving was largely stimulated by the work of John Maynard Keynes and his attempt to understand the sources of the Great Depression. As he famously observed, in an economy closed to international trade and capital movements, overall economic activity adjusts to equate desired saving with desired investment.
This insight, together with the implication that government must intervene when desired investment falls, desired saving increases and credit markets fail (all of which are true of the United States today) lies at the heart of today's call for global fiscal stimulus.”
What are you talking about? Now it is recognized by every one that the crisis were deepened in United States because of dried up ‘savings’ in other words US consumer used all or most of their earning and saved nothing or less.
What about the wrong direction of government during boom period. Did private institutions have intervened or do they have any incentive to do so for corrective mechanism?