Recession is an integral part of the economic cycle. It is not there simply because a failure is done somewhere along the way. It is there because it is part and parcel of the economic cycle. The economic activities of a certain country or even region constantly expand and contract. That is the norm in the market. The spending rises and falls. And when the spending falls way below the normal level, it is when recession takes place. It is as old as humanity. It does not have anything to do with Bitcoin.
That's correct. I was explaining the "economic cycle" and what could cause a recession in the "economic cycle."
So, what caused economic crisis 1998 in SEA and financial crisis 2008 in Europe & the US? It's not a mere "economic cycle" isn't it?
So, it is the responsibility of the government to monitor banks to see weaker ones to be merged or bought over. That should be the first step instead of printing more money into circulation.
Banks failure should not be the burden of government. Let the unprofitable die or naturally merged with a "hands-off" policy. If the government starts to take part in the market, the market becomes inefficient. Banks will be overly risk-taker because they know that in the face of bankruptcy, the government will save them.