Ok, let’s give every financial institution a year to sell all its assets (as opposed to a week). Who’s going to buy them? You think the majority will need bank financing? Do you really think there’s enough private long-term capital to buy all of these assets (you pick the time period)?
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And therein lies the problem with leverage…it relies on ever-expanding leverage and debt.
At what point do we decide to actually make good on all our debts and bets? Is this not **exactly** what a Ponzi scheme is? Has there ever been a Ponzi scheme that didn’t implode when its upper-most limits were reached? Do we believe in “infinite upper limits,” and how would that work?
I agree with Josh and The Breeze. It would be much better for our society to allow the banks to fail, and let the government fund infrastructure and other projects that would actually benefit society in the long-run — even if we have to run deficits to counter the destruction caused by the financial industry.
Perhaps the choice isn’t just agrarian society/economy vs. F.I.R.E. economy. Maybe there is a better way altogether. Our economy should be based more on production and innovation rather than financial Ponzi schemes.
