Lavish explains that any crisis now will be kicked up to the sovereign level for the first time in recent history: "We have the tech bubble, and that's kind of kicked up to the banks. Then we continue on, and we've got this risk, this debt indebtedness, that's now kicked up to the banks. And now we're coming on the great financial crisis with the housing market. The housing bubble and all of these banks holding this mortgage paper, which is just garbage, end up going under. Where does it get kicked? It gets kicked up to the federal level. And now it's sitting on the Federal Reserve's balance sheet.
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54 sats \ 2 replies \ @riberet19 23 Jun
Everything seems too chaotic, but the suffering is dragging on a lot without a crisis at a deep level, I have been believing that it will happen for more than 3 years, but everything seems to be holding up.
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32 sats \ 1 reply \ @siggy47 OP 23 Jun freebie
They will do all they can to keep kicking the can. It seems to me if they keep interest rates high for much longer, banks with those underwater bonds and CMBS will continue to fail, but more rapidly. If they lower rates inflation will start climbing again. No easy answers.
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54 sats \ 0 replies \ @riberet19 23 Jun
That's just what I think, but I don't think they can keep rates much longer at this level, it's like chemotherapy for the economy constantly, I think that more than there are no easy answers, there is no escape that will free us from a crisis sooner or later.
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