this post was submitted on 28 Jun 2023
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[–] [email protected] 3 points 2 years ago
[–] [email protected] 2 points 2 years ago

Central banks buying up all the bad debt every time there is a crisis creates a massive moral hazard.

Basically the best business model is to rack off the most garbage debt possible then wait for the next crisis and let the central banks eat all the risk.

[–] [email protected] 1 points 2 years ago
[–] [email protected] 0 points 2 years ago

This is a deliberately obtuse take by the Telegraph. Central banks are literally empowered to create or destroy money; the profits and losses they themselves make are accounting fictions.