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A comment on Well-behaved bubbles often make history. Parent comment

Re:Well-behaved bubbles often make history by mandelbrotwurst on Tuesday June 15, 2021 @05:26PM (#27521728)
If the government deems all banks “too big to fail”, does that remove the risk?
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Re:Well-behaved bubbles often make history by pxue on Tuesday June 15, 2021 @05:32PM (#27521791)
no. because bank going bankrupt doesn't wipe away YOUR debt. it wipes away banks obligation to the governing body.

also micro-lending will be as big in west as it's in China in the next decade. borrowing 10k to margin trade the stock market is inherently more risky than borrowing 10M for a mortgage.

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Re:Well-behaved bubbles often make history by asimjalis on Tuesday June 15, 2021 @09:04PM (#27523702)
It makes things worse because the banks now have an incentive to engage in riskier behavior. Their downside is covered by the government and their upside is payoff. So reckless behavior becomes a nobrainer.
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Re:Well-behaved bubbles often make history by l33tbro on Tuesday June 15, 2021 @06:06PM (#27522147)
If only. The debt becomes worn as inflation and higher taxes.
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Re:Well-behaved bubbles often make history by Nursie on Tuesday June 15, 2021 @05:33PM (#27521797)
Hardly, it may (or may not) help to mitigate the fallout though.
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