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So in that situation, the banks are basically in a position where raising their rates (which earns them more) will lead to the feds covering more and more of th
by jVinc 7y ago
So in that situation, the banks are basically in a position where raising their rates (which earns them more) will lead to the feds covering more and more of that? What's to stop them from collectively playing chicken against the feds, while shoveling money into the bag until it becomes ridicules? I mean normally I'd expect a business being close to bankruptcy being told by an investor "This simply cannot happen, I will inject money indiscriminately until you float!!" will start looking for money dumps like buying verbs from CEO's, not opportunities to actually bring the business back in good standing.
- dpc_pw 7y agoWhat you've described is already happening, just on a global scale. For 10 or more years, whole financial system is just pushing slowly and collectively the lever, knowing that central banks will not allow it to collapse. So as long, as you're not outstandingly fragile, and instead your collapse would mean a collapse of most of similar financial agents, you can always push your risk a little bit higher, forcing your competition to the same.
- beamatronic 7y agoSo, where should we put our money?
- n-exploit 7y agoDecentralized currencies.