If private financial institutions have to absorb all financial risk, then the degree to which they can leverage will be limited, the financial sector smaller, and its contribution to the economy more limited.
Aside from a rebound in inventory investment, these include the end of the retrenchment under way in high-tech investment. Just the return to flat investment spending, from the sharp declines of recent quarters, will give the economy an important boost. Such a rebound will likely be reinforced by a dissipation of gloom and resulting rebound in consumer confidence.