In an excellent essay on Mises.org, Mark Thornton comes to the same conclusion. He does so in the context of the Lehman Brothers' bankruptcy and therefore designates his recovery prescription, "The Lehman Brothers Plan."
Government should balance its budget. There should be no new credit expansion by the Federal Reserve. Most importantly, government should not meddle in markets to try to soften the consequences of the correction. Specifically, that means no bailouts, stimulus packages, or new public-works projects. Do not prop up wages. Allow competition to lower the prices of land, labor, and capital. The only positive steps for government to take are implementing tax cuts and spending cuts, eliminating regulations, and allowing free trade.