Capítulo 65: Why a global manufacturing slump is a recurring threat
We don't have a lot of restrictions on investing in risky projects. It's the right policy too. We need to develop new technology before we run out of resources that fuel our old technology. It's as simple as that. To develop new tech is high risk venture. But it's vital for us.
Thus we do need crises too. The regular crises comes to take away (to bury) the inefficient companies that lived to it case of the liberal refinancing rules. It's that simple.
Now, should you bush out the failed companies starting from big banks - you create nice long Great Depression out of your regular crisis. As we did twice for USA and all the world. As Japan did for the region in 90-s.
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