Before modern regulatory controls, free financial markets regulated themselves. Severe bubbles were rare, though economic cycles were common, as they still are.
But recessions were self-correcting, because they were market-oriented. An economic downturn was generally brief, self- repaired by inherent market instincts.
There were no strict regulatory powers, with no artificial tinkering and meddling by use of economic theories or any correcting stimulus. Yet, the steeper the downturn, the faster and sharper the recovery in every instance.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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