this post was submitted on 21 Jul 2026
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[–] xiii@lemmy.world 16 points 2 days ago

No, this is have enough canned food scenario.

If the money would wipe out from the economy, that is less money for everyone. First round of bankruptcies will also wipe out contractors and debt issuers of the bancrupted companies, and so on. Mass layoffs. People cannot afford restaurants, or car washes, more businesses out, more mass layoffs.

In 2001 tech bubble the money haven't been lost. Virtual valuation dropped sharply. But the economy recovered in a year.

This is like 2008, money have been poured into concrete and silicon chips. They were spend, gone for good. It will take a few good years to recover if the bubble would burst.