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There are no BOOM AND BUST cycles anymore, at least not in the way you were taught that they NORMALLY BEHAVE. Traditionally, credit contracts, then profits shrink, the stock market falls, and personal income dries up last, as companies are forced to lay off people. The response is, therefore, pretty straightforward in those cases: the banks expand credit, profits grow, the market recovers, and income levels flow once more, as companies hire.
