Banks are designed to fail – and they do
by @martinwolf_ / @FT
https://btcnews.today/2023-03-16/1227#1227
#bitcoin
"The fundamental lesson we have to relearn is that even in a modest crisis deposits cannot be sacrificed, and rules on haircuts for provision of liquidity will go out of the window. Banks are wards of the state partly because they are at the heart of the credit system, but even more because their deposit liabilities are so politically important. The marriage of risky and often illiquid assets with liabilities that have to be safe and liquid within undercapitalised, profit-seeking and bonus-paying institutions regulated by politically subservient and often incompetent public sectors is a calamity waiting to happen.
BTCNews / BTCNews.Today
npub1ne…82v2c
2023-03-16 01:35:32
Author Public Key
npub1news9epyjkzguhgt6mlkavdsmnqs4j632u673j0kelypwh644jfst82v2cPublished at
2023-03-16 01:35:32Event JSON
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