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They way to prevent irrational markets out running your solvency is to avoid easy lending/borrowing in the good times.
by datavirtue 8y ago
They way to prevent irrational markets out running your solvency is to avoid easy lending/borrowing in the good times.
- toss1 8y agoOf course, but the Chinese needed to do that a decade ago -- it is way too late for that now... Usually the central banks serve that function by raising interest rates in better times as the economy heats up. China's? Not so much. Seems they might need to learn this lesson the hard way.