4 ms·
Id call interest / base rate the original sin, since its at the very top.
by throwawayqqq11 1y ago
Id call interest / base rate the original sin, since its at the very top.
- porridgeraisin 1y agoOther way around. Central bank stimulus is a response to divert the utter crisis the economy would go into if they don't do something. This situation in the first place is caused by gambling.
- throwawayqqq11 1y agoThese crises are caused by ever increasing profit expenctations, be it from mortage payments or bubbled up venture capital, because there are interest rates ticking on all of it. Gambling or what ever trading is just a superficial piece of the puzzle. Even if there were no irrational, egoistic gamblers, the system would still have a positive feedback loop.