Reddenbacher

The Real Credit Crunch

What you call deflation is what most of us refer to as a deep recession or indeed a depression. This means massive job losses and wealth losses across society. Of course it must be prevented at all costs. And after it is prevented a new regime of appropriate regulation and enforcement needs to be put in place so that the surviving financial firms serve their societal purpose of helping to finance the real economy while earning a very nice return for their effort. Contrast this to what has happened over the last dozen years where the financial firms chased after ever greater profits through the great paper shuffling gambling casino they built atop their traditional busiess of financing the real economy. We'll (us taxpayers) will have to save some of them but in return "appropriate" regulation and "vigorous" enforcement must be put in place.