On SARS-CoV-2 causing the meltdown
On SARS-CoV-2 causing the meltdown

Short Thoughts - Did SARS-CoV-2 cause the meltdown?

If you answered yes, you're right.

But you are also not fully right, because SARS-CoV-2 and the resulting disease Covid19 was just the final straw on VERY overburdened camel's back. Unfortunately the people loading the camel is not learning their lessons. Unfortunately for working class people all around the world, this straw is of epic proportions, and it will be a very long time before the camel recovers.

Their are many different lessons that have been ignored over the decades and centuries. The most important is that the economy is a complex adaptive system. (CAS). These symptoms are prone to booms and busts. It is futile to try and prevent the busts from occurring, the effort should be on how to make the system resilient to the busts.

At the moment the policy intention is always to prevent the busts, with the inevitable effect that when they do occur they are just that much bigger.

The second major problem, is that especially since the

Long Term Capital Management⁠

collapse in 1998, government has repeatedly bailed out financial institutions because they are "too big too fail", nor are any of the executives in these companies ever sanctioned. At least not seriously sanctioned. The net effect is that financial (and other companies) keep on taking more risky investments, with more debt, knowing very well that there is no downside - it they go bust, the government will bail them out.

It has now gotten to the stage where the Federal Reserve and US Government are protecting debt that was issued knowing full well that they had were rated junk.

See this article⁠

. I do not egree with all his remedies, but the essence of the problem he is noting, is as true as it is shocking.

Hang in there, and byt vas,

⁠

Source⁠

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On SARS-CoV-2 causing the meltdownOn SARS-CoV-2 causing the meltdown

Short Thoughts - Did SARS-CoV-2 cause the meltdown?

On SARS-CoV-2 causing the meltdown
On SARS-CoV-2 causing the meltdown