The lack of trust stemmed from complex derivative contracts which allowed people to create bets on thing they did not own with massive upsides. The cascade was in the contracts creating disproportionate problems in the books of banks + the fact that the CDOs themselves were falling apart in value.
Something like this could have easily* been created via ETH and automatically cascaded without and brakes and caused a chaotic meltdown that would be TRUELY destroyed the trust, not in ETH, but in the other people which we could lend money to and stop the growth of the economy which credit is built on.
* in a world where we used ETH to make these contracts normally as we do today using English and our existing Property/Tax/etc. laws.
Something like this could have easily* been created via ETH and automatically cascaded without and brakes and caused a chaotic meltdown that would be TRUELY destroyed the trust, not in ETH, but in the other people which we could lend money to and stop the growth of the economy which credit is built on.
* in a world where we used ETH to make these contracts normally as we do today using English and our existing Property/Tax/etc. laws.