Comment by littlestymaar
5 days ago
For every debt there's a debtor and a debtee. For the first debt is a liability, while it's an asset for the second.
5 days ago
For every debt there's a debtor and a debtee. For the first debt is a liability, while it's an asset for the second.
and liabilities are always paid back in full and never smoothed over with money printing bailouts.
I don't understand the point you're making.
All kind of assets can lose value overnight, be it stocks or real estate.
Lending on no reserve secretly doubles the money supply, sometimes even more if repackaged multiple times. It creates a highly risky financial environment that taxpayers inevitably are forced to bailout (usually through layoffs and hyperinflation). Time and time again.
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