Just curious as to what your solution is to a liquidity crisis?
I haven’t really thought about it. If the Fed under Yellen keeps spending the way they do why would banks stop lending is what I’d ask myself.
If QE is stopped, then everything will contract. I think I’d encourage businesses to focus on their core business and operate it without borrowing. Go back to the same values they had when they were a young, vigorous start-up and couldn’t borrow.
Another possibility would be a world war and cut everything including social security, medicare, etc. as part of the war effort. (/sarc)