121 karma · joined June 7, 2018
- David Foster Wallace
To be clear, if you live in the northern hemisphere, you should be taking vitamin D. It's cheap and at worst harmless. But that's not the same as saying it will improve the outcome of covid patients.
Hard to imagine how you reached that conclusion from what I wrote.
I do somewhat agree that having the precedent of a prior bailout might encourage some potentially stupid behaviour that might not otherwise be considered. The alternative, however, is much worse (in my opinion). The point isn't to keep Morgan Stanley or Merrill Lynch or whoever in business, the point is to make sure that the rest of the country doesn't lose their entire life savings because of one recession. If the cost of economic stability is propping up a few rich people, it's probably worth it considering the alternative. Of course, I'm sure the anarcho-captilist blockchain experts might feel differently.
I don't understand how people believe this is a good thing (not implying you do specifically). One of the leading factors in the economic recovery following the 2008 crisis was Quantitative Easing and expansionary policies by the fed. Without these tools at the government's disposal, if there was another credit crisis, the effects would almost certainly be much worse and prolonged.
Like any tool, sure, it can be abused. But getting rid of it entirely by switching to a decentralized ledger (ignoring the reality that total decentralization seems infeasible), eliminates the very tangible benefits of having a central bank.