No. of Recommendations: 4
If confidence in the American banking system had not been restored in 2006 what was the likely outcome? I shudder to think.

What was the likely outcome?

Perhaps a new banking system, based on real numbers, rather than fictional derivatives and manipulated markets.

Oh, and there likely would have been a "re-set," with new players - with unencumbered cash and hard assets ready to swoop in like vultures to re-build from the rubble.

In other words, creative destruction likely would have worked to quickly move us away from central planning and toward a market-based capitalism and healing based on real, not illusory, wealth.

Sort of like the recovery that is occurring in Iceland.

I suspect that we will likely eventually end up with a re-set some time in the future, as a result of an even bigger collapse in confidence than that which occurred.

Eventually, all bubbles must burst, despite the Herculean efforts of central planners.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.