>Two months before the collapse of Bear Stearns, the first investment bank claimed by The Great Recession, The New York Times ran a story entitled, "Can banks s

>Two months before the collapse of Bear Stearns, the first investment bank claimed by The Great Recession, The New York Times ran a story entitled, "Can banks self-regulate?" Clearly, the answer was no. To nitpick on this quote further: recessions are the market correcting itself. A recession can mean that a bubble was growing in the market and it burst. In that sense, if banks are allowed to fail then they are self-regulating: the market decides which banks can survive and which can't. The downside is that due to how fractional reserve banking is set up and how the banks are interconnected that the failure of one can cause a cascade. In regards to tech companies, I wonder if they're not simply overvalued. If the value of tech companies gets cut in half then I can see it causing quite a few problems.