I don’t think anyone wishes for recessions. That is like wishing for hurricanes or earthquakes. But a hurricane is needed to equalize heat energy distribution in air & water (it is one giant convection current) and an earthquake is needed to relieve the tectonic stresses. Without the coming recession, there is no easy way to steer all the resources from home building activities to more productive use of capital. It is an economic equivalent of a hurricane or earthquake that redistributes capital to more efficient activities. Obviously, its intensity depends on the degree of imbalance (of capital distribution) in the system. In this case, that was very large – of the order of trillions of $ – the “convection currents” will be correspondingly large.
