This stabilized the banking system, but it didn't address the more fundamental problems associated with the successful investment of surplus capital. Something had to be done on this front, and since liquidity economics worked so well in stabilizing the banking system, it was accepted as a paradigm for stabilizing investment as well. Scholastic economics continues to insist that its principles do work, and that the economy is under control, but their enthusiasm is not generally shared by the populace. We get along as best we can, hoping that they're right, but anxious that they're not. Hence our search for a new economic paradigm.
Solutions change when circumstances change.