What to Do When Crisis-Caused Crash of Finances Happens?
I hope you are already sure that the “financial crisis” would be more correctly called the “crisis-caused crash of finances.” Now, let us think what should be done when it happens.
First of all, and it is now obvious, people should urgently search for the systemic crisis that caused this crash.
Second, in no case the government should try to replace the fuse with a "jumper", i.e. inject additional funds into the banking and financial sector to stop the bleeding.
Third, government should not try to restructure the financial system on the go. It is better to allow the finances to collapse further so that they continue to signal the danger until the systemic crisis is overcome by replacement of the old paradigm with a new one. The success of this replacement will be immediately announced by the natural restoration of finance "to normal."
The question of whether it is worth trying to avoid or prevent a financial crisis collapse has a definite answer: in no case! In the absence of other “fuses” in the many complexly interwoven circuits that process and utilize the resources, replacing a financial fuse with a “jumper” is simply stupid. Well, yes, we could save on fuses, but then both the wiring and the whole house would burn out.
Since the systemic crises in a constantly evolving human society are inevitable, we cannot find a better and more reliable guard than the unreliable and ever-threatening financial system (pardon the pun).
I understand that the analogy is controversial, and drawing the conclusions on its base is even more controversial. I'm ready to discuss these recommendations!