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I would generally agree if we never just went through a major crisis and saw the failings of current processes. One of the things that was made explicitly clear
by marcamillion 16y ago
I would generally agree if we never just went through a major crisis and saw the failings of current processes. One of the things that was made explicitly clear, is that for some firms that are too large, the bankruptcy proceedings don't really work like they should.
I do think, however, that if Google or Amazon failed there are some elements that would stay up - but it's more than just those elements.
It's the little things, like email for 200million people disappearing overnight. I can't even imagine the amounts of things that would be lost (receipts from sales, tax information, customer data, invoices, legal contracts, etc.). Much less just a major communication channel going dark. That alone would cause a dip in GDP (in my opinion).
Might be difficult to foresee, but so was the banking crisis.
- Symmetry 16y agoWhere did we see failing of the current process? Not the financial system, which obviously failed, but the bankruptcy process. I'm not aware of any company suddenly closing up shop during the crisis. We didn't use follow the normal rules with the automakers but that was because it would have been bad politically for the UAW to lose their pensions, rather than out of any inability of bankruptcy to keep the automakers going in some form. If you have specific examples of things suddenly shutting down during the crisis apart from debt repayments or people being less willing to spend money, I'd be really interested in hearing it.