Living in Capitalist economy is like riding a tiger. You cannot get off from it without being eaten.
There is too much money in the economy, bank created money, fiat currency money. (The crisis world is facing is not about less money in market, but that people do not trust each other to lend. ) Without this organized banking fraud is not ended, economy will not stabilize.
if that money is taken out from the market, you cannot predict what will happen. There will be market crashes all over the world, industries will fail, etc. That is the right thing to do, unless you do not mind this big ponzi economic fraud that we are living in.
What is the right thing: There should be some standard for currency, gold, silver anything that is not easy to produce. Money creation by banks should be stopped. For a start increase cash reserve ratio step by step. Interest rates should be decided by the market.
Consequence: Economy will shrink when the money created by banks are taken out; shrink is a small word considering the ridiculous reserve ratios. Non productive industries will loose market.
I hope we can continue riding the tiger and let another generation solve the problem or get eaten.