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> So if you want to avoid 2008 in cryptocurrency, the answer would be more regulation, not less. To expand on this point. Deregulation with a federal reserve f
by mbesto 5y ago
> So if you want to avoid 2008 in cryptocurrency, the answer would be more regulation, not less.
To expand on this point. Deregulation with a federal reserve fallback is especially dangerous because it's essentially fake deregulation. When you know that you're too big to fail and the government is going to bail you then your risk to allocate capital effectively becomes zero.
- miohtama 5y agoI think the Boeing CEO (or some other airline) was famously quoted for this that they do not need any cash buffers, as the government will always bail them out, no matter what https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3571441 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3571441 Thus, it’s ok to spend extra cash to stock buybacks and maintain no cash reserves.
- philwelch 5y agoI mean, he isn't wrong, is he? If he's wrong, then maybe the next time Boeing needs a bailout, we should make an example of them and not bail them out. If we don't have the balls to do that, why should they have a cash buffer?