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.;-)
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