3 ms·
Isn't the finance industry in conflict between supporting stable growth of 'real' economy by providing capital vs. their ability to gain during volotile times.
by stana 10y ago
Isn't the finance industry in conflict between supporting stable growth of 'real' economy by providing capital vs. their ability to gain during volotile times. Or can someone enlighten me why they are so oblivious to asset bubbles, with no effort to restrain borrowing in a particular bubbly asset, unless volatility is seen as no issue - or even an opportunity.
- rukittenme 10y agoIts precisely the opposite! The financial industry supports stable growth. If the crops fail, insurance contracts keep farmers from going out of business. If you grow old and can't work, your retirement fund keeps you from being a weight on society. Asset bubbles are always identified in hind-sight. Volatility does not create asset bubbles. If anything volatility keeps investors bearish.