The US [and then world] recessions:

1931 recession - President Roosevelt implemented a massive government spending program [New Deal] that reduced unemployment by half [from 25% to 14%] and increased consumers confidence and public optimism of better days ahead; but prices rose [to absorb the extra money available] causing high inflation; and goverment deficits grew from 16% to 40% of GDP; when the government had to cut spending, and increase taxes [sounds familiar? EU countries are doing this in 2010] then credits got tightened; US went from a recession into a deeper recession in 1937.

1980 recession - the US [and world] economy was coming back from a major downturn [recession] but still on edge with double digit interest rates and double digit inflation; President Reegan kept the rates high to combat inflation so consumers spent less and inflation deflated but US went into another recession before it recovered in 1982.

2008 recession - US subprime housing loans [US government subsidised schemes] collapsed, US [and world] went into massive deficits to stimulate the economy; in 2010, US continues to call for more spending and to issue government bonds, USD declines in value by some 30%; in Thailand, interest rates kept low to stimulate economy, massive spending paid for by government bonds, government deficits go up to 50% of GDP, due to foreign manufacturer-based exports and food exports THB maintains it value [but looks up when compared to USD]; EU countries adopt 'austerity' programs to strengthen [leaner and fitter] economic bases; China keeps the Yuan low to keep US market [thus subsidises imports in US]; Climate change and floods reduce food production in Asia and Europe and food [also metals and fuels] price-hikes are expected; high global inflation is expected; economy in US improves marginally and another US [then world] double-dipping recession is expected.

So, as we can see from history, when a bubble burst, we tried pumping in more air to keep it afloat, then we ran out of puff and we let it die. Economists keep repeating the same solution pattern. They burn the house to keep the fire burning high so the rich are warm, then they leave and let the fire die so the poor have to rebuild another house.