Although started due to a banking crisis, the current recession is now continuing because of a massive decrease in aggregate demand, not because banks are having trouble lending, so no solution to banking, even if it is indeed still broken, which I doubt, will help us get out of the worldwide recession any sooner. (Another way to think about this is that if housing prices suddenly went up, the banking crisis would also be over.)
I agree with your diagnosis. However, it's not actually necessary to address the cause to solve the current problem.
There's more trillions gone than there is production in the world, it was part of our great GDP, but it still is a debt to someone.
There's no emollient left to make a bubble with. But note, the USians just took delivery of a new aircraft carrier on 10 Jan ($6.2 billion), they've another in production (only $5.1 billion) and dumped nearly $400 million onto Northrop to start designs on the next one. So things must not be really all that bad. Why do we need a banking system when we has gots the aircraft carriers. Your Industry New Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
