Roger Garrison explains why a recession is necessary, i.e., a "correction" - As opposed to the keynesian gov'ts buzz-word, "crisis":
"As boom turns to bust, much .. unemployment is associated with liquidations in the early stages of production. Too much capital and labor have been committed to new ventures. The liquidations release these factors of production, most of which can be reabsorbed .. not instantaneously .. elsewhere in the structure of production...
Under the most favorable conditions, the bust could be followed by a recovery in which the structural maladjustments induced by the credit expansion are corrected by the ordinary market forces. But because of the economywide nature of the intertemporal disequilibrium, the negative income effect of the unemployment may initially propel the economy deeper into depression... the downturn is likely to be all the more severe if the general operation of markets is countered by macroeconomic policies aimed at preventing liquidation and at reigniting the boom."
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