"You make a lot of assumptions that are not necessarily true." These assumptions were made by leading economists and bankers(Ben Bernanke, Gov of Bank of Engla

"You make a lot of assumptions that are not necessarily true." These assumptions were made by leading economists and bankers(Ben Bernanke, Gov of Bank of England, Treasury sec, etc) and they are also based on direct experience from the great depression, the Asian financial crash/contagion of the 90s, etc. "people tend to overestimate such things because you cannot disprove them." The problem is that during a financial panic, you cannot make reasonable estimations. History shows financial panics to be very, very destructive. And in our highly interdependent economies, a financial panic is far more destructive than previous times. The most effective way to deal with financial panics seems to be bailouts. We may not like it, and rightly so. But what choice is there?