10 sats \ 2 replies \ @shado_op 13 Feb \ parent \ on: How fiat will kill itself econ
UK wise, defined benefit (final salary) schemes already have a bail out mechanism in the Pension Protection Fund. Other schemes dont, however post covid the principle of the magic money tree is now firmly established in most people's minds and it is inconceivable any elected politian would hesitate if they thought there was near term electoral advantage...
write
preview
111 sats \ 1 reply \ @0xIlmari 13 Feb
Pretty sure every protection or insurance fund, be it for pensions or bank deposits has limits on size and generally holds enough money to bail out one, maybe two failing institutions.
In case of a systemic failure I'd assume all such schemes to be basically tits up and "please central bank bail us out of our idiocy so we can continue to scam our customers".
reply
0 sats \ 0 replies \ @shado_op 13 Feb
Yes, they exist to bail out an occasional or small failure. QE originated due to systemic risk, there's plenty of sources and interviews from the credit crunch where it all began... Systemic failure = its all over, for everyone!
reply