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Financial institutions are not a product of the free market — they are heavily regulated by government. On top of that, the currency that has been given legal
by runeks 9y ago
Financial institutions are not a product of the free market — they are heavily regulated by government.
On top of that, the currency that has been given legal tender status by government, and the currency used as the basis for calculating capital gains tax, just happens to be issued by the central bank that’s willing to monetize the government’s debt. What a peculiar coincidence.
- mcguire 9y agoFinancial institutions are a product of the free market, but are heavily regulated ("heavily?") by the government because humans are congenitally incapable of failing to avoid moral hazards.
- Retric 9y agoFinancial institutions predate government regulations. Their general role is cash flow management (ex: Loans) or risk mitigation (ex: Insurance).
- runeks 9y agoYou’re right. I should have written “contemporary financial institutions”.