One should insist on the key question: which ‘flaw’ of the system as such opens up the possibility for such crises and collapses? The first thing to bear in mind here is that the origin of the crisis is a ‘benevolent’ one: after the dotcom bubble burst in 2001, the decision reached across party lines was to facilitate real estate investments in order to keep the economy going and prevent recession – today’s meltdown is the price for the US having avoided a recession seven years ago.
The danger is thus that the predominant narrative of the meltdown won’t be the one that awakes us from a dream, but the one that will enable us to continue to dream. And it is here that we should start to worry: not only about the economic consequences of the meltdown, but about the obvious temptation to reinvigorate the ‘war on terror’ and US interventionism in order to keep the economy running.
That the Internet and housing hyperinflations transpired within a period of ten years, each creating trillions of dollars in fake wealth, is, I believe, only the beginning. There will and must be many more such booms, for without them the economy of the United States can no longer function. The bubble cycle has replaced the business cycle.
