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A government in its own currency can never go bankrupt. The bailing out procedure should become a prepackaged administration process via the central bank. Bank
by neilwilson 9y ago
A government in its own currency can never go bankrupt.
The bailing out procedure should become a prepackaged administration process via the central bank. Banks should know if they exhaust their capital buffers the bank will be placed into administration and refloated by the central bank. ALL equity holders in the bank will make a total loss.
That then sets expectations correctly.
- fwdpropaganda 9y ago> A government in its own currency can never go bankrupt. Argentina defaults about once a decade. I wonder what would move you to make such an obviously false statement.
- sangnoir 9y ago> A government in its own currency can never go bankrupt. Zimbabwe would like to have a word. I bring this up not to be snarky, but because that was the thinking of the president at the time - he once asked "Have you ever heard of a country that collapsed because of borrowing?"[1]. I suppose he said this before the hyperinflation kicked in. 1. https://www.economist.com/news/middle-east-and-africa/21731449-his-secret-was-talk-eloquently-and-carry-big-stick-how-robert-mugabe-held https://www.economist.com/news/middle-east-and-africa/217314...