Reasons the banking crisis isn’t a repeat of 2008

Post by chiefalchemist » Sat, Mar 25, 2023, 11:36 AM UTC

nicoburns wrote: post #96

strken wrote: post #93

Earlier quoted context omitted.

I hate the implication of coordination. I think it's more likely that every person at every link in the chain is following some incentive: financial experts within banks are saying whatever they think will get governments to stop putting up interest rates (we're in a banking crisis), journalists are repeating interesting and dramatic news from their sources (that we're in a banking crisis), their editors are careful…

I mean the right-wing political parties are pretty open about their desire to keep the status quo economic system which causes wealth the move to the top (and in many cases increase the extent to which it does by doing things like privatising public industries, deregulating industries, etc). And they're obviously a coordinated entity by nature of being a political party. No conspiracy theories required.

Post by fijiaarone » Sat, Mar 25, 2023, 11:39 AM UTC

notch898a wrote: post #33

fyzix wrote: post #23

History never repeats itself, but it does often rhyme. We cannot have a decade of 0% interest rates and expect no consequences. Peter Schiff predicted this from the moment the fed bailouted the banks in 2008. There's nothing the fed can do to escape this one, it's either massive inflation or massive recession. The fed has avoided the latter by bailing out the banks again so expect double digit inflation for the next…

>There's nothing the fed can do to escape this one, it's either massive inflation or massive recession. The fed knows this. They should make it explicit to the common, ~100 IQ, joe six pack American. It's infuriating watching them act so carefully as to pretend to try and not spook anyone.

Post by legulere » Sat, Mar 25, 2023, 11:40 AM UTC

makerdiety wrote: post #53

majormajor wrote: post #30

Earlier quoted context omitted.

I think that's what the commenter was getting at, but I think the fixation on banks as a way of "printing money" as a big problem is wildly overblown. "Money" is more of a fiction than that, and that's ok. Creating a successful company creates money. Crypto created money (while often pitched as ultimately being about the opposite).

If money is a fiction, and if successful companies create money, then successful companies create fictional currency and assets. So crypto being successful and creating money is just as bad as a successful company like Facebook or Google. Because money is fictional and therefore useless. And it's okay to accumulate a useless asset like money? Strange. Is there another game we can play? One that exits from this bad ca…

Post by fijiaarone » Sat, Mar 25, 2023, 11:45 AM UTC

berkle4455 wrote: post #26

kiernanmcgowan wrote: post #8

Earlier quoted context omitted.

In the same way that you should take a software engineer's take on why a a SQL query is slow. They're probably the most knowledgeable person in the room but that doesn't always mean that they're right.

Most software engineers are absolutely garbage at SQL though. Their expertise often ends at CRUD queries, if they can even achieve that without their precious ORMs.

Post by fijiaarone » Sat, Mar 25, 2023, 11:48 AM UTC

Broken_Hippo wrote: post #251

baldeagle wrote: post #3

Earlier quoted context omitted.

Once you acknowledge their bias, they do know an awful lot about banking.

Once you acknowledge their bias, they do know an awful lot about banking Sure, but I really don't. And a lot of other folks are the same. I know they are both biased and have financial incentives to lie or mislead me. As much as I might try, I know I might not be able to parse out the bullshit from the facts. Those facts are gonna stink of the bullshit even if I can verify it. At least with something like a plumber,…