Barely a decade ago, the nation was sliding into a recession, one that became known as the Great Recession for good reason. Like the Great Depression, the financial sector was at the heart of those economic problems. In 2010, Congress required banks of all types to increase capital, as a buffer to absorb future losses, and to increase bank regulation to preclude “risky” lending. The banks and their backers complained loudly and continually.
Entering today’s pandemic collapse, it is very comforting that our banking system is strong enough to survive and to help the overall economy survive. Indeed, the Great Recession helped prepare us for this pandemic collapse. Friedrich Nietzsche (1844-1900) was a German philosopher who famously said “That which does not destroy us only makes us stronger.” Thinking about our economic collapse from this pandemic, I am reminded of Nietzsche.
So, be thankful for the Great Recession!