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Stating obvious, this is only true until debts exceed a leverage US government has to inject currency it magically creates or utilize other financial tools it h
by O__________O 4y ago
Stating obvious, this is only true until debts exceed a leverage US government has to inject currency it magically creates or utilize other financial tools it has available. At the point they are unable to do so, that’s no longer the case, system reaches a critical point for which recovery will take real assets at fair market value on the global market.
Ironically, US’s down fall may be its own failure to believe itself.
- bubbleRefuge 4y agoIf Banks make bad loans and those loans( or investments) are marked to market bringing the bank out of compliance with Capital requirements, then it gets shutdown.
- jessaustin 4y agoThat's the theory, but does anyone still believe it? In USA now, and for at least the last 15 years, those wealthy enough to hire lobbyists always get bailed out. This week was an opportunity to improve that situation, merely by allowing FDIC to operate in its normal lawful fashion. Small deposits protected entirely, large deposits receive their share of liquidated assets, shareholder equity disappears. Easy and lawful. Saule Omarova, had she been confirmed, would have pushed for this. (If better OCC regulation under her leadership hadn't avoided this situation entirely.) Suddenly it's obvious why she was not confirmed...