Can even get worse if the borrowed money only exists based on promises in the first place.
The tragedy is that that these crashes often increase inequality and concetrate power. The victims are innocent and the perpetrators are not held accountable.
The tragedy is that that these crashes often increase inequality and concetrate power. The victims are innocent and the perpetrators are not held accountable.
Maybe they understood that it was an opportunity to seize, a cheap loan in a bubbling up market, and they decided against carefulness.
I face this with bitcoin for instance, trying to stay careful in an exciting rising market. If I stick to fundamentals and what I think I know of past experiments, this makes no sense. If I look at making money in my lifetime, I feel stupid resisting.
The financial market and its powerful actors have a massive collective responsibility, that they often don’t seem to be aware of.
The few that are responsible have been ignored for reasons I cannot otherwise understand but as greed.
I speak as an outsider and layman here. I understand that mistakes can be made and that things are very complex and unpredictable. What I have a problem with is that they don’t seem to get accounted for, and certainly not fixed.
The criticism of the banking system and financial markets goes way back. It has been discussed and brought to attention by the likes of Adam Smith. But somehow we just keep patching over the symptoms, if at all, rather than question the severed connection between power and responsibility.
but isn't this all modern fiat money?