The business times quotes an anonymous “senior London Banker”
Someone will go under in this crisis, that’s for sure. The question is whether they stay under or get rescued. Let’s see whether this latest round of stabilisation helps, but if it doesn’t, it’s difficult to see what Plan B is. The Fed can’t just keep on printing money.
Yes, the Fed can just keep on printing money.
The banks have real assets and nominal liabilities. If the Fed debases money enough, the banks will be fine – it is just that everyone else will be broke.
Tags: fiat money, inflation