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?
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway.