Swamp The System With Cash + The Bright Side

The US has had a number of banking crises since the 1850s. The way to fix it to to swamp the system with cash.

The negative economic forces currently are much larger than most understand. Even greater than what I thought in a worst case scenario. I would equate it to a wild fire. The regulators have to overwhelm the system with cash. Pour it in. Otherwise the fire in the banking arena may continue to show up in unexpected places as cinders stay hot. A half hearted effort will not restore confidence.

Now a look at the bright side. There are positives to this painful process. Eventually markets will stabilize and the credit markets will function properly. This is all a process that will make way for the next bull market. The excesses had to be cleaned out. No doubt we will be so much better for it in the future. Credit was way too easy and asset prices (real estate and equities, others too) went too high. However, the seeds of economic prosperity are now being formed. It will take some time, probably a lot of time but this is the necessary process to bring future prosperity.