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I vaguely remember my macroecon class in college so many moons ago. The point is to stop a “contagion” from spreading and causing panic, right?
by tracer4201 7y ago
I vaguely remember my macroecon class in college so many moons ago. The point is to stop a “contagion” from spreading and causing panic, right?
- toomuchtodo 7y agoEssentially. Read about the 2007-2008 GFC [1] to understand how fast the system can break down (weeks). Personally, I find the story of how JP Morgan (the financier) first acted as this sort of national economic backstop in 1907 very interesting and a fun read [2]. [1] https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932008 https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80... [2] https://en.wikipedia.org/wiki/Panic_of_1907 https://en.wikipedia.org/wiki/Panic_of_1907
- disiplus 7y agoim in the middle of the book Crashed, that pretty good explains exactly this in the events of 2008 crash https://www.amazon.com/Crashed-Decade-Financial-Crises-Changed/dp/0670024937 https://www.amazon.com/Crashed-Decade-Financial-Crises-Chang...