3 ms·

We must let banks fail.

• mdorazio 3y ago
  As the article points out, in this case the bank is the central bank and letting it fail means collapsing the US economy (eventually).
  • throwawaymaths 3y ago
    It wouldn't be the central bank: the central banks (are the only banks that) cannot fail due to the inability to pay out interest.
    • sokoloff 3y ago
      This is a very strong premise, but not an absolute truth. All of the discussions around the US debt ceiling are largely about maintaining confidence that interest will be paid.
      • throwawaymaths 3y ago
        The fed can always QE to pay the debt. Debt ceiling is mostly about other contractual payment obligations by the government. Remember, the government != the fed