alt Hacker NewsYou'll live through many recessions in your lifetime regardless. The implication that regulators can/should prevent all recessions is suspect to me.
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origini • yesterday at 9:08 PM
Lucky enough we don't live in a free market. US America perhaps more than germany, non the less there are plenty of regulations to protect consumers.
If a recession was started because someone else is taking your retirement fonds and putting them in companies overvaluated to move money from retirement fonds to random other people, and this is closer to gambling than investment, regulators should step in.
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In fact, the problem is that they keep bailing us out of recessions, which will eventually lead to a collapse and possibly a depression.
2019: That bond bailout you didn't hear about
2020: COVID bailout
2022: Various credit/liquidity facilities and the slow-walked rate hikes
2023: Bank bailouts
I dunno what happens this time. So many cards have been played out and a lot of entities seem to be white-knuckling it.
The boom-and-bust cycle is a natural consequence of running an economy on debt: margin leads to speculation which leads to overheating, and then it has to cool off. It is entirely possible to guarantee the public's welfare during busts; you just have to sacrifice not having a ceiling on earnings/wealth.