Wonder - once we finally get the much needed “financial market car crash” - whether liquidity/cash will then flow to income related goods/services and sustain inflation that way?
Wonder - once we finally get the much needed “financial market car crash” - whether liquidity/cash will then flow to income related goods/services and sustain inflation that way?
Investors and consumers will put their wallets away. Then the central banks will bail out the banks. And print again. Sadly, that's the playbook of the last 30 years or so. Can't see how it changes, given the dynamics of cash piling up in fewer and fewer hands in banks, while debt gets loaded up at the household and govt end of the spectrum.
Except when the banks are bailed out it should be as the government taking on equity, not a loan regardless of how nice or nasty the interest rate is. If a bank were to see the gov't taking a hefty share of equity then maybe the banks would go to their existing shareholders; you know, the ones with all that money.
Wonder - once we finally get the much needed “financial market car crash” - whether liquidity/cash will then flow to income related goods/services and sustain inflation that way?
Investors and consumers will put their wallets away. Then the central banks will bail out the banks. And print again. Sadly, that's the playbook of the last 30 years or so. Can't see how it changes, given the dynamics of cash piling up in fewer and fewer hands in banks, while debt gets loaded up at the household and govt end of the spectrum.
Except when the banks are bailed out it should be as the government taking on equity, not a loan regardless of how nice or nasty the interest rate is. If a bank were to see the gov't taking a hefty share of equity then maybe the banks would go to their existing shareholders; you know, the ones with all that money.