Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.
As this Reason video points out, we've had bubbles burst before which harmed entire industries before. In fact, when the dot com bubble burst, I was personally effected and was out of work for about 6 months. The company I worked for was not a "dot com" per se, but when I was laid off, there was such a glut in the market with all the dot com guys out there, that it was very hard to get a job. Nobody came to my aid then. So why can't these companies do what the internet companies did then? The bad ones shut down, the good ones re-capitalize around a profitable business, and the economy moves forward?