Fear we ago again, another financial crisis looms
The Covid19 pandemic is the 2nd major crisis in 12 years. Many businesses & people have just about recovered from the financial crash of 2008. Another major panic, so soon after the last encounter with disaster, forces a rethink of priorities in all aspects of life. The financial crisis of 2008 was followed by a “top down” tsunami of money issued by central banks, for capital markets, bondholders & institutions. This largesse was deliberately targeted away from ordinary people, for fear of undermining incentives for work & enterprise. The benefits of the wall of money were supposed to trickle down to the population from increased spending & investment by holders of financial & asset wealth. In practice there is a limit to how much of everyday goods & services anyone can consume. Wealthy asset-owners splashed their cash on classic cars, art-works & real estate. The value of expensive assets rose to stratospheric levels while workers, citizens & small ...
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