Thanks for your response, Dave, and we agree that the best scenario would be a few years (3-5?) of severe recession/depression with slow growth thereafter for a number of years.
Personally, as far as fractional reserve banking goes, I’d like to see 100% reserve banking or, at most, 2:1 loaned out (two dollars loaned for every one dollar in deposits).
Shrinkage? Yep.
High interest rates? You betcha!
Lots of pain as we adjust through the credit collapse and begin saving toward future purchases? Tons of pain, but well worth it over the long run, IMHO.
Healthier economy where people can save and actually buy things with their own money…priceless!!! 🙂
