I can’t get rid of an impression that the current policy of pumping liquidity into the U.S. market is a preliminary measure, that offers only temporary relief, but doesn’t solve the problem of current crisis. Liquidity is thought to fill in the credit flow pipes, but I believe the problem is much deeper, than simply lack of liquidity.
There is nothing new actually in what I will say now: economy, financial sectors need restructuring. The supposition I make is that probably the market will not be able to do so on its own, as the marketeers believe. The problem is that it is very difficult to do the restructuring of the modern economy for any government, think-tank, etc. It is simply too complicated to identify what branches of an economy should be cut off and what branches strengthened or even grown anew (like green technologies)
I suspect infrastructure development may not be the right answer for XXI century and may not be enough on its own. My suspicion is that the recent years mergers may have had an impact on the crisis development. So in order to solve the problem in long term, perhaps new anti-monopolistic rules should be agreed upon and enforced across countries. This of course required unprecedented level of international cooperation (if one country demonopolizes its economy and others will not, the latter may have competitive advantage). How to do this, I’m not going to say, but my educated guess is that while mergers do not need state assistance that much, splitting up monopolies on large scale cannot happen on its own without government’s interference.