Re:Banks as Collateral Damage in a Class War
by shjake on Wednesday March 22, 2023 @11:50AM
(#35262949)
What you’re suggesting doesn’t make much sense from a practical perspective?
What is debt anyway? Let say I hold 100k in leveraged derivatives which are the equivalent of someone holding 400k worth of the underlying asset (they put down 100k and borrowed 300k).
What happens under this scheme if everyone gets 100k? I buy another 100k of derivatives and the other guy has to spend it paying down debt…
This is just a massive miss-allocated stimulus program (financed through.. you guessed it.. more debt) if that’s what Keen is suggesting maybe it’s one of the main reasons nobody takes him seriously?
What is debt anyway? Let say I hold 100k in leveraged derivatives which are the equivalent of someone holding 400k worth of the underlying asset (they put down 100k and borrowed 300k).
What happens under this scheme if everyone gets 100k? I buy another 100k of derivatives and the other guy has to spend it paying down debt…
This is just a massive miss-allocated stimulus program (financed through.. you guessed it.. more debt) if that’s what Keen is suggesting maybe it’s one of the main reasons nobody takes him seriously?