2min chapter

Crypto Critics' Corner cover image

The FDIC, Infinite Insurance, and Moral Hazards (Feat. Rohan Grey)

Crypto Critics' Corner

CHAPTER

The Cost of Letting This Happen Over and Over Again

How many times can they do bail-ins, bail-outs before they can't anymore? It doesn't seem sustainable without causing hyperinflation. I think it's just an increasingly large chunk of overall investment and spending that remains privatized in a pro-cyclical pro-crisis regime. The ability to get a loan to make the casino is competing directly with the real resources that the school wants in that particular town. So bank credit as a source of demand is in competition with public investment as a sources of demand.

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