Bankruptcy is a natural occurrence in an economic system. It did not need to paralyze the entire economy, since businesses operate according to different hierarchies of goals and needs. On the contrary, the gaps left by companies that exited the market should have been filled by stronger firms. As financial resources still existed, it can be concluded that incorrect business decisions were made.
The market failed to close these gaps, and the resulting damage was distributed evenly across businesses rather than proportionally. As a result, the economy lost the opportunity for a major boom following a great recession, perhaps permanently. Consequently, speculative activity has become the dominant framework for rapid enrichment during this free fall in overall investment interest.
Individuals now rely more than ever on their need to work. Personal labor is rewarded only to the extent that it allows them to purchase basic necessities such as food and housing. There are currently no significant savings in the bank accounts of ordinary workers. Their household economies depend almost entirely on monthly or even daily wages. This phenomenon demonstrates that people consume roughly as much as they produce.
Therefore, future market transformation will depend largely on them. However, the market cannot stabilize itself through its own mechanisms. It requires deliberate change toward a different structure. Bank recapitalization may have prevented a new generalized crisis, but it didn't fundamentally alter the negative trajectory of the global economy.
Observing recent developments, we can conclude that economic recovery will occur only when society profoundly changes the hierarchy of consumer behavior. Since the market is unable to reassemble its own components, society will reshape it according to its immediate needs. The survival of the strongest doesn't apply when strength remains inert.
