So what. People made loans to people that were not likely to pay them back, and the creditors lost out when they realized they would never get their money. People can't just borrow money to get a standard of living that they cannot afford. On top of that, people are just scaremongering about the economy. There is no recession, the economy is still growing, the growth has just slowed.

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"It is extremely difficult for our contemporaries to conceive of the conditions of free banking because they take government interference with banking for granted and as necessary"

-- Ludwig von Mises