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Same thing could have been said in 2007. "Everyone" knew there were a bunch of junk bonds floating around. What's uncertain is who is exposed and how bad is it,
by AlexandrB 3y ago
Same thing could have been said in 2007. "Everyone" knew there were a bunch of junk bonds floating around. What's uncertain is who is exposed and how bad is it, so which bank do you bet against?
- ericmcer 3y agoIn 2007 we didn't have a precedent for just printing money to cover everyone when things went down. If anything financial disasters are great for people who hold stock now. All the added money will settle there.
- CamperBob2 3y agoIf you owe the bank $100K, you have a problem. If you owe the bank $100M, the bank has a problem. If you owe the bank $100B, nobody has a problem, because Uncle Sam will somehow magically take care of everything. So, yeah, I'm not sure we took the right lessons away from the last time this sort of thing happened. Taxpayer-funded bailout for the commercial real estate sector coming in 3...2...1...
- s1artibartfast 3y agoUncle Sam just spreads the problem around. Your 100B debt is now everybody else's problem and they get to pay interest on your debt.